Beach Energy Limited announced that it is undertaking a A$345 million capital raising consisting of:
– a fully underwritten 1 for 8 pro-rata accelerated non-renounceable entitlement offer, at A$1.40 per Beach share, to raise approximately A$195 million; and – an offer to raise approximately A$150 million in senior, unsecured Convertible Notes due 2017
The net proceeds from the Entitlement Offer and Convertible Notes Offer will be used, together with existing operating cash flow and other capital resources, to fund Beach’s future capital expenditure initiatives over the next 2-3 years and for general working capital purposes. The key elements of Beach’s capital expenditure program include:
– Cooper Basin conventional – ongoing exploration, appraisal and development of Beach’s key cash producing assets – Cooper Basin unconventional – continued appraisal of a gas resource in the Nappamerri Trough – Egypt – ongoing appraisal and development of oil discoveries and further exploration – Tanzania – exploration for oil reservoirs along the proven East African Rift
Beach’s Managing Director, Mr Reg Nelson , said “Beach is entering a new and exciting development and exploration phase, which we believe has the potential to transform not only Beach, but also the Cooper Basin and the east coast gas market for years to come. We believe that in order to underpin this next phase of the Company’s growth, an appropriate level of capital is required to ensure we are self funded for the foreseeable future.”
[mappress] LNG World News Staff, March 27, 2012