Talon Energy announces A$14mn capital raise
Australian gas explorer Talon Energy on March 3 said that it will raise A$12mn ($8.09mn) through a placement of new fully paid shares at an issue price of A$0.145/share. The company will also offer a share purchase plan targeting up to A$2mn.
Proceeds from the capital raising will be used to fund Talon’s share of the final development capital and operating costs for the Walyering gas project, Perth basin exploration activities, including farm-in expenditure of the recently acquired L7/EP437 permit and general working capital and transaction costs.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Talon has acquired a 25% interest in Triangle Energy’s L7 and EP437 onshore Perth basin permits. The A$9.26mn deal was announced in December last year.
“This is an important capital raising which will fully fund Talon’s share of Walyering’s development capital and operating costs, and provide additional capital to further invest in our high-quality exploration portfolio over the next couple of years,” Talon’s managing director, Colby Hauser, said.
“Walyering is expected to be Western Australia’s (WA) next onshore gas producer, and will be a low cost, low carbon intensity project that is well placed to meet WA’s growing industrial gas demand,” he added.
Meanwhile, Talon has commenced a strategic review to determine how to optimise the value of its 33% interest in the Gurvantes XXXV coalbed methane project in Mongolia. These options could include a de-merger or other alternative transaction structures, it said.