Magnum Gas & Power to Raise $1.5 mn for Botswana, NSW CSG Operations

Magnum Gas & Power Limited plans to raise $1.5 million through a share purchase plan to advance its Botswana and New South Wales coal seam gas projects.

Botswana

Magnum has recently completed a successful exploration programme in Botswana and is currently engaged in testing and analysis work. The company recently announced very positive initial results which confirmed a high percentage of methane in the gas composition.

The next phase of exploration drilling is now being planned with a number of prospective target areas identified.

New South Wales

The company retains a significant interest in a number of license areas in New South Wales. While these projects have been essentially at standstill for some time due to state and federal politics, Magnum believes in the project fundamentals (the acreage has existing reserves, is near existing infrastructure and sits in a region with a looming energy crisis) and is waiting for a defined process from the government to enable planned operations to be approved and recommence, the company said.

Mangum said in a statement Wednesday that it is pleased by the recent change in rhetoric from the Federal and NSW Governments and is particularly encouraged by NSW Resources and Energy Minister Chris Hartcher’s invitation to former federal resources minister Martin Ferguson to broker a breakthrough in the crisis in natural gas supply that is threatening the state.

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