Oz Comet Ridge Raises A$13mn

Comet Ridge has received binding commitments for A$10mn (US$8.8mn) placement ahead of launching a share purchase plan to raise up to an additional A$3mn, it said November 27.

The placement price of A$0.19/share represents a discount of 10% to the 5-day average price of A$0.21/share up to November 22. The company will issue approximately 52.6mn placement shares within its current placement capacity, representing 7.2% of its current issued capital, it said.

The funds will be used to accelerate the company’s plans to supply Australia’s tightening east coast gas market. “First gas from our flagship Mahalo gas project by late 2021 remains our highest priority, but at the same time we are pursuing early production opportunities at Mahalo North to achieve scale economies, higher overall offtake and higher value for stakeholders in the project,” managing director Tor McCaul said. “This capital raising also enables the company to progress the certification of gas reserves at Mahalo North and for our Albany wells in the Galilee Deeps.”

The net proceeds of the placement will be used for Mahalo North coalbed methane project (tenure management, engineering, first phase drilling and seismic survey); Mahalo gas project (pre-FID joint venture activities); Galilee Deeps project (testing of Albany 1 and 2, tenure management and resource certification in conjunction with joint venture partner, Vintage Energy); and general corporate costs and working capital purposes.

Sydney-listed Comet Ridge Limited is focused on the development of gas resources for the east coast Australian market and has tenement interests and a suite of prospective projects in Queensland and New South Wales.