Senex to Raise $155 mn for Cooper Basin Exploration

Senex Energy will likely raise A$155 million to speed up exploration of unconventional oil and gas in South Australia’s Cooper Basin.

The company will go for a fully underwritten institutional placement to raise about A$50 million and a 2 for 13 accelerated non-renounceable entitlement offer to raise A$105 million.

Shares issued under this offers will be priced at A$0.74 each, representing a 14.5% discount to the theoretical ex-rights price.

The capital raising exercise is supported by The Sentient Group, Senex’s largest shareholder, which has committed to the underwriters that it will participate in the Equity Raising to retain its 16.6% shareholding.

Proceeds from the raising will be used to fund a follow on exploration and appraisal of the company’s successful unconventional exploration program in the southern Cooper Basin and also to start unconventional exploration in the northern Cooper Basin.