- Junior oil and gas company Pilot Energy (PGY) has frozen its shares until the end of the week as it gears up to launch a capital raise
- The company has not yet revealed how much it plans to raise or what the new funds will be used for
- Of course, in its June quarterly report, Pilot flagged that it would be looking to raise capital soon through a share placement and rights issue or purchase plan
- Since then, the company has still managed to receive government approval for an exploration license renewal and bump up its interest in the license to 100 per cent
- Shares in Pilot last traded for four cents each on Friday afternoon
Junior oil and gas company Pilot Energy (PGY) has frozen its shares until the end of the week as it gears up to launch a capital raise.
The company has not yet revealed how much it plans to raise and for what the new funds will be used, but Pilot has called for back-to-back trading halts to keep shares out of trade until Friday morning.
Of course, the capital raise likely comes as no surprise to shareholders after the company’s June financial report.
At the end of the quarter, Pilot had just $31,000 in the bank for exploration work. Given the onset of COVID-19, however, the company said exploration would be limited for the time being.
Nevertheless, Pilot said in late-July it had been in talks with existing and prospective shareholders regarding funding for future operations. Specifically, the company said it was likely to raise some extra capital through a share placement combined with a rights issue or share purchase plan.
Of course, in the months since, Pilot hasn’t been idle. In mid-August, the company landed government approval for the renewal of its Petroleum Exploration Permit WA-481-P, meaning it can explore the area for another five years.
On September 8, Pilot moved to take full ownership of the license. The company already owned 60 per cent in a joint venture partnership with fellow-listed Key Petroleum (KEY) but decided to snap up the remaining 40 per cent by issuing Key 21 million PGY shares.
Just last week, the company appointed a new director and corporate advisor to its team.
Shares in Pilot last traded for four cents each on Friday afternoon. The company has a $4.24 million market cap.