Triangle Energy (Global) Ltd has received firm commitments to raise $5 million in a placement to institutional and sophisticated investors to advance its onshore Perth Basin projects ahead of drilling which is planned for the second quarter.
The placement, at 1.6 cents per share to institutional and sophisticated investors, was strongly supported with demand significantly in excess of the placement size.
In addition to the placement, Triangle also intends to undertake a non-renounceable entitlement offer to eligible shareholders to raise up to A$1.5 million on the same terms as the placement.
The funds raised, together with the company’s existing cash and tradeable securities of $5.9 million, will be used to advance exploration and drilling of the company’s Perth Basin assets (L7 and EP 437).
"Testament to significant potential"
Triangle managing director Conrad Todd, said: “The Perth Basin is one of the most exciting onshore oil and gas basins in the world with multiple significant gas discoveries since the Waitsia discovery in 2014.
“Triangle’s exploration acreage in the Perth Basin has not been drilled for 30 years, during which time the introduction of 3D seismic data has played a pivotal role in some of the Basin’s major discoveries.
“Recent 3D seismic surveys have revealed numerous high-quality oil and gas targets within Triangle’s tenure, with drilling of the Booth and Becos targets planned for Q2-Q3 this year.
“Drilling costs will be substantially met by JV partners, with Triangle retaining a 50% project interest in both prospects, providing outstanding leverage to exploration success.
“The strong support shown for Triangle’s placement is a testament to both the significant potential of our projects and the exciting period ahead for Triangle shareholders as we move towards drilling in L7 and EP 437 and finalising the sale of the Cliff Head asset.
“We are also pleased to be able to provide eligible shareholders with the opportunity to participate in the equity raising on the same terms as the Placement via the Entitlement Offer.
“This equity raising will ensure Triangle is well funded for its share of drilling of its Perth Basin assets alongside JV Partners, Strike Energy Ltd and New Zealand Oil & Gas Ltd.
“We would like to thank the strong support shown in this placement from both existing shareholders and new investors alike and look forward to a very big 2024 for both Triangle Energy and the Perth Basin.”