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- Comet Ridge (COI) receives firm commitments to raise $24 million under a share placement
- The funds will be raised through the issue of approximately 137 million new shares at an issue price of 17.5 cents
- The money will be applied to core and pilot well drilling at COI’s northern Mahalo blocks and an initial reserves certification and pro-production engineering for Mahalo North
- Around $8.2 million will go toward the loan repayment relating to the strategic acquisition of APLNG’s 30 per cent stake in Mahalo
- Comet Ridge ends the day 24.5 per cent in the red to close at 18.5 cents
Comet Ridge (COI) has received firm commitments to raise $24 million under a share placement.
The funds will be raised through the issue of approximately 137 million new shares at an issue price of 17.5 cents.
This price represents a 20 per cent discount to the five-day volume-weighted average price and a 16 per cent discount to the 15-day volume-weighted average price.
Of the $24 million, $8.6 million will be applied to core and pilot well drilling at Comet Ridge’s northern Mahalo blocks in Queensland.
A further $8.2 million will go toward the loan repayment relating to the recent strategic acquisition of APLNG’s 30 per cent stake in the Mahalo gas project.
The money will also go towards an initial reserves certification and pre-production engineering for Mahalo North with $5 million applied to working capital.
Bell Potter, Petra Capital and Taylor Collison acted as joint lead managers and joint bookrunners.
“Comet Ridge is now well funded to continue its forward momentum and achieve its objective to become a meaningful gas supplier from its Mahalo Gas Hub assets into the strong east coast gas market,” Managing Director Tor McCaul commented.
“We look forward to controlling our own destiny through additional investment in the ground at our 100 per cent owned and operated northern Mahalo blocks, to further expand our gas reserves and resources position.
“The field economic potential is exciting, with our recent Mahalo North 1 pilot well recording the highest flow rate from a single pilot well, exceeding 1.7 MMcfd, in the Mahalo Gas Hub area.”
Comet Ridge has ended the day 24.5 per cent in the red to close at 18.5 cents.
