Drillsearch raises Cooper funds

by on July 27, 2012 2:17 am BST

Drillsearch said it would use the funds to accelerate oil production from existing discoveries on the western flank of the Cooper basin through the construction of export pipelines and central production facilities, as well as additional development wells.

Part of the funds will also be used expand its wet gas pilot project in PEL 106B through the connection of the Canunda gas field and installation of the Middleton gas plant compression facilities.

It will also use the money raised to test and develop new wet gas discoveries as well as to fund an appraisal and development programme for existing undeveloped wet gas discoveries, with the aim of installing a second wet gas production pilot plant in the area.

The placement was priced a A$1.02 per share which the company said represented a 5% discount to the 10-day volume weighted average price of A$1.07 prior to the company entering a trading halt on Thursday.

Drillsearch had initially planned to raise A$40 million, but that figure was upsized a further A$10 million as a result of strong support from new and existing investors.

Drillsearch noted that BG subsidiary QGC, which currently holds 9.4% shareholding in the Australian company, took up its pro-rata amount of 4.6 million shares under the placement.

UBS was the sole lead manager and sole underwriter for the placement, while RBC Capital Markets was engaged as co-lead manager.