L Energy completes A$7M placement for coal seam gas development
June 30 (BusinessWire) – L Energy Ltd. completed a placement of about A$7 million to raise funds to develop its coal seam gas project in
Southland.
The company sold about 77 million shares at 9 Australian cents apiece to institutional and sophisticated investors in
what it said reflected strong support for its strategy for developing coal seam gas in New Zealand.
Funds to be used for production testing and confirming an estimated 2P of reserves at its Ohai Coal Seam Gas project in
Southland. The company is considering offering to sell shares on the same terms to existing shareholders via a share
purchase plan, it said.
The placement was managed by by Philip Capital in Australia and McDouall Stuart in New Zealand.
Funds will also be used to investigate the potential for the development of a micro-LNG facility to fast track coal seam
gas extracted in Southland and to meet general working capital, it said.
On the NZX, L’s shares tumbled 13% to 13 cents today.
(BusinessWire)