Triangle Energy (Global) Ltd has raised $6.72 million via the sale of 24 million shares of State Gas Ltd (ASX:GAS) while retaining a 10.1% strategic holding in the expanded capital of that company.
Out of the 24 million shares, 8 million were sold to St Baker family members and 16 million were sold to a prominent investment fund managed by Regal Partners Ltd.
This is the same price that the St Baker group and other investors paid for shares in State Gas in its placement last week.
“New venture opportunities”
Triangle managing director Conrad Todd said: “Triangle Energy Global is pleased to have taken the opportunity to monetise some of our holdings in State Gas.
“This finance will allow Triangle to progress the L7 and EP437 permits, as well as our Carbon Capture and Sequestration project over the Cliff Head Field along with new venture opportunities while retaining a substantial holding in State Gas which gives good exposure to potential upside.
“Triangle looks forward to working with the new board of State Gas.”
Use of funds
This share sale provides Triangle with a more balanced, secure and stable portfolio going into 2023/24 in terms of:
- forward funding through to L7/EP437 drilling decisions;
- retaining potential to the future upside with State Gas;
- the continued progress of the Cliff Head CCS Project;
- improved ability to pursue strategic new venture opportunities;
- continued truck-to-tanker (oil export) income/funding; and
- reduced portfolio risk exposure.