Norwest Energy receives $3.25 million in placement commitments to fund Perth Basin exploration drilling
Norwest Energy NL (ASX:NWE) has received commitments to raise $3.25 million through a placement of securities to a range of sophisticated and institutional investors, including the company's Board of Directors.
The company also intends to undertake a Share Purchase Plan (SPP) to raise up to a maximum of $500,000, providing eligible shareholders with an opportunity to participate in the capital raising on the same terms as the placement.
Funds raised from the placement and SPP will be used to fund the following:
- Drilling costs associated with Norwest Energy's 20% interest of exploration drilling in permit EP 368 in the Perth Basin (expected to spud in 1H 2020);
- Planning and preparation for operations to meet future work commitments within EP 368 and EP 426;
- Desktop studies on Norwest Energy's other Perth Basin interests including the Xanadu oil discovery; and
- Partial repayment of the Sundowner International Convertible Loan Facility; and
- General working capital.
Drilling program “pushing ahead”
Norwest managing director Iain Smith said: “I believe this is a great result at what is a very exciting time for Norwest Energy and Perth Basin explorers in general, with two very significant conventional gas discoveries in as many months, both immediately adjacent to our acreage.
“The prospectivity of the basin has been hugely enhanced in recent years with discoveries in each of the three exploration wells that have tested the Kingia/High Cliff Permian gas play.
“The funds raised, together with our current cash at bank and the $630,000 net incoming proceeds from the sale of L14 allow us to push ahead with our planned drilling program in EP 368 at our full 20% working interest Read More – Source