Triangle Energy (Global) Ltd has received a strong show of support for its oil and gas strategy centred on the Perth Basin in WA by raising $4 million in a strongly supported placement to institutional, sophisticated and professional investors.
The funds will be used for exploration and drilling of the high-impact, onshore Perth Basin assets at which the Booth-1 well is expected to spud by tomorrow, July 31.
Booth-1, which will be the company’s first well to be drilled on its permits for 30 years, will test multiple oil and gas targets, including the Kingia and other early Permian formations, the Dongara formation and Mt Horner equivalent oil sands.
Entering “transformative period”
Triangle’s managing director Conrad Todd said: “This placement ensures the company is in a strong position as we enter this transformative period, embarking on our first drilling campaign in many years and approaching the final stages of the divestment of the Cliff Head oil field.
"The overwhelming support from both existing shareholders and new investors highlights the strong support for our strategy to focus on our highly promising Perth Basin exploration assets as well as new ventures.
"With the imminent spud of Booth-1, we are excited to commence what promises to be the most thrilling drilling campaign undertaken by a junior company in recent years.”
The total Prospective Resource range targeted by the Booth-1 well is 113 Bcf (billion cubic feet of gas) to 540 Bcf with a Best Estimate of 279 Bcf (Gross 100%, on-block).
Proceeds from the placement, together with the company’s existing cash reserves, will be used to fund exploration and the imminent drilling of Triangle’s Perth Basin assets (L7 and EP 437) and for general working capital purposes.
Placement details
The issue price of 1.5 cents per share represents an 11.8% discount to the last ASX closing share price of 1.7 cents prior to the placement and a 20.1% discount to the 15-day VWAP.
This placement comprises the issue of approximately 266,666,667 new fully paid ordinary shares, comprising 85,319,931 shares issued within the company’s 15% placement capacity under ASX Listing Rule 7.1 and 181,346,736 within the 10% placement capacity under ASX Listing Rule 7.1A.
Placement shares will rank equally with existing ordinary shares from the date of issue.
Triangle will also issue one listed option (ASX:TEGO) for every one placement share subscribed for with each exercisable at 2.5 cents with an expiry date of June 30, 2025, subject to shareholder approval, scheduled to take place on or around mid-September 2024.
Euroz Hartleys Limited acted as sole lead manager to the placement and Peak Asset Management was co-manager to the placement.
TEG stated: "Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project it relates to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk to development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons."