State Gas (ASX:GAS) raises around $14.5M for its projects

• State Gas (GAS) has raised around $4.9 million from nearly 250 shareholders in a share purchase plan (SPP)
• The company originally set out to raise $2 million, but its SPP was oversubscribed
• The SPP follows another private placement in which $9.5 million was raised
• The combined $14.5 million in funding will support a bigger appraisal program at State’s Reid’s Dome Gas project, as well as drilling and testing at the neighbouring Rolleston West project
• Funds will also allow planning and approval for a gas pipeline and infrastructure to export gas from both projects
• State Gas shares closed 4.2 per cent lower on the market, worth 57 cents

State Gas (GAS) has raised around $4.9 million from around 250 shareholders via a share purchase plan (SPP).

The company originally planned to raise $2 million, however, applications exceeded the target and State Gas accepted all eligible participants.

The 246 valid applications received represented a participation rate of over a third of eligible shareholders, investing an average amount of about $20,000.

The SPP followed a recent $9.5 million raise completed by a private placement. The combined total will fund a bigger appraisal program at the company’s Reid’s Dome Gas project, as well as drilling and testing at the neighbouring Rolleston West project. The extra cash will also support planning and approval for a gas pipeline and infrastructure to export gas from both projects.

State Gas Executive Chairman Richard Cottee said the extra funds would position the company well.

“The proceeds from the SPP, when combined with the preceding private placement of $9.5 million, not only strengthens our resolve to meet our target 2022 objectives but also enable the company to take its first steps to creating a new ‘super-gas region’ within our wholly-owned acreage at a time of national need,” he said.

State Gas shares closed 4.2 per cent lower on the market, at 57 cents