- State Gas (GAS) completes an $8 million placement to conduct production testing and drilling in Queensland
- The energy stock will issue 25 million new shares to institutional and sophisticated investors at 32 cents per share
- State Gas is using the funds for production testing and drilling at the Rougemont Project and to complete further production testing at the Reid’s Dome Project
- Company shares are down 1.32 per cent to trade at 37.5 cents
State Gas (GAS) has completed an $8 million placement to conduct exploration in Queensland.
The energy stock will issue 25 million new shares to institutional and sophisticated investors at 32 cents per share.
The issue price represents a 15.8 per cent discount to the last closing price and a 21.6 per cent discount to the 30-day volume-weighted average price.
State Gas Executive Chairman, Richard Cottee, said he was pleased the placement received strong interest from investors.
“The strong demand for this placement reflects the increasingly high prices for gas and support for the mission the company has embarked on to bring new supplies to market in 2023. 2023 is the year which the ACCC, in its recent report, indicates is the start of a critical need for additional gas supplies.”
State Gas will use the money to begin production testing at the Rougemont-2 well and drill the Rougemont coal seam gas (CSG) fairway which lies within GAS’ wholly-owned Rolleston West Project in Queensland.
The company will also complete further production testing at Nyanda 8 and Serecold 1 which are part of the Reid’s Dome Project.
The placement is expected to settle on or around September 28 with the new shares to be issued on the following day.
State Gas’ team is now preparing for the next phase of work at both the Rougemont and Reid’s Dome gas projects.
Company shares were down 1.32 per cent to trade at 37.5 cents at 12:20 pm AEST.