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Australia: Norwest Energy announces capital raising to fund Perth Basin exploration drilling
12 Nov 2019
- $3.25million raised in placement to sophisticated and institutional investors
- Share Purchase Plan to raise up to an additional $500,000
- Norwest Energy funded to drill high impact well in EP 368 in H1 2020, directly on trend withrecent major Perth Basin gas discoveries
- Decision on EP 368well location expected shortly
Perth Basin focused oil and gas exploration company Norwest Energy has announced that it has received commitments to raise $3.25 million via a placement of securities to a range of sophisticated and institutional investors, including the Norwest Energy Boardof Directors.
In addition, the Company intends to undertake a Share Purchase Plan ('SPP') to raise up to a maximum of $500,000, providing eligible shareholders with an opportunity to participate in the capital raising on the same terms as the Placement.
The monies raised from the Placement and SPP will be used to fund the following:
- Drilling costs associated with Norwest Energy's 20% interest of exploration drilling in permit EP 368 in the Perth Basin (expected spud in 1H2020);
- Planning and preparation for operations to meet future work commitments within EP 368 and EP 426;
- Desktop studies on Norwest Energy's other Perth Basin interests including the Xanadu oil discovery;
- Partial repayment of the Sundowner International Convertible Loan Facility;and
- General working capital.
Commenting on the success of the capital raising, Norwest’s Managing Director, Iain Smith, said:
'I believe thisis a great result at what is a very exciting time for Norwest Energy and Perth Basin explorers in general, with two very significant conventional gas discoveries in as many months, both immediately adjacent to our acreage. The prospectivity of the basin has been hugely enhanced in recent years with discoveries in each of the three exploration wells that have tested the Kingia/High Cliff Permian gas play.
The funds raised, together with our current cash at bank and the $630,000 net incoming proceeds from the sale of L14, allow us to push ahead with our planned drilling program in EP 368 at our full 20% working interest in the first half of CY2020.The EP 368 Joint Venture will shortly select the location for what could be a truly transformational exploration well for Norwest, and we are pleased to be able to provide shareholders, both existing and new, with such exciting exposure to the emerging Perth Basin gas play.'
Source: Norwest Energy