BPH capital raising to support development of PEP11
BPH Energy Limited (ASX:BPH; BPHAO) has completed a share placement to sophisticated and professional investors that will provide the capacity to raise $9 million.
While the issue price of 13 cents represents a discount of about 20% to the 10-day volume-weighted average share price (VWAP), it should be noted that in the last week of December the company’s shares were trading as low as 3.4 cents.
The proceeds of the placement will be used by BPH primarily to invest in Advent Energy Limited.
BPH Energy Ltd’s investee company, Advent Energy Ltd through its wholly-owned subsidiary Asset Energy Pty Ltd (Asset), has signed a Preliminary Well Services Agreement with Add Energy for the drilling of the Baleen prospect, offshore New South Wales.
Advent Energy holds a strong portfolio of conventional and non-conventional near-term development and exploration assets spanning highly prospective acreage onshore and offshore Australia in proven petroleum basins.
The funds proposed to be invested by BPH will be used by Advent to progress well planning, engineering and environmental approvals for drilling at the Baleen drill target in the PEP11 offshore permit in NSW (see above).
It is planned that approximately $5.75 million of the capital raised will be used for this purpose.
Commenting on the capital raising, BPH managing director David Breeze said, “The company is pleased to receive funding from a range of investors including existing and new shareholders, and others who participated in the placement through Everblu Capital and 62 Capital”.
NOPTA close to decision regarding permit conditions for PEP11
BPH has previously advised it will underwrite and invest in Advent and will increase BPH’s shareholding from 22% to approximately 33% (subject to any required approvals or via an underwriting of an offer by BPH).
Advent has submitted to the National Offshore Petroleum Titles Administrator (NOPTA) an application to change the current PEP11 permit conditions in order for it to proceed with the drilling.
Advent, through its wholly-owned subsidiary Asset Energy Pty Ltd (Asset), holds an 85% interest and is operator of the PEP11 permit.
Bounty Oil and Gas NL (ASX: BUY) holds the remaining 15%.
The NOPTA application is in the final decision phase.
Management also expects to use $500,000 of the placement proceeds to increase its shareholding in Cortical Dynamics Limited (Cortical) from 16% to 18%, enabling further development of its Brain Anesthesia Response Monitor (BARM).
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.