Pilot Energy shifts gear to raise $3.6 million

Published at Mar 31, 2016, in Energy

Pilot Energy (ASX:PGY) is ready to ramp things up, with a $3.6 million capital raising bagging it a new cornerstone investor group as it chases its ambitions of being a vertically integrated upstream player.

It told its investors earlier today that in a raising arranged by Patersons Securities, a series of four Australian and Hong Kong-based private companies will end up holding 45.4% of the company’s securities.

The deal will be done in two tranches, with a premium to the company’s 30 day volume-weighted average price of 34% and 100% respectively.

As part of the deal, the combined group will be able to nominate an executive director, a non-executive director, and an advisor to the board – all subject to shareholder and Foreign Investment Review Board approval.

Current directors Conrad Todd and Rory McGoldrick will step down to allow the new appointments.

Coming onto the board will be Benson Wong, Wilson Xue, and Xingjin Wang as the advisor.

The deal will allow PGY to meet current commitments on its leasing while providing “substantial” working capital for the company.

Wong said the group of four companies had been looking for an opportunity to invest in Australian exploration and production, with PGY offering an ideal entry point into the market.

“Our investor group has reviewed a large number of oil and gas investment opportunities over the past 12 months, and regards Pilot Energy’s management team, asset portfolio, and approach to business as offering a unique opportunity to create a leading Australian E&P [exploration and production] company,” Wong said.

Tranche one of the investment will be an investment of $800,000 to acquire 400 million shares at 0.2c per share, a 35% premium on PGY’s 30 day VWAP.

The second tranche, which needs to be signed off by shareholders at a meeting in June, is a deal to acquire a further 933.3 million shares at 0.3c each – raising $2.8 million at a 100% premium to PGY’s 30-day VWAP.

The Pilot play

Pilot Energy currently has four permits on its plate in WA, with one deepwater, one shallow water, and two onshore.

The deepwater block, WA-507-P has been heralded as possibly hosting multi-billion barrels of oil in potential, while the shallow water block has recently been touted as possibly holding up to 72 million barrels of oil.

Onshore it holds interests in two blocks with experienced Perth Basin player Empire Oil & Gas on permits EP480 and EP416, while further to the north it holds a 13% stake in EP437, which stretches from Geraldton to Dongarra.

Its Perth Basin play is to prove up a gas resource it can sell into a domestic market which could lose a fair chunk of supply in 2020 when domestic gas reservation requirements from the North West Shelf LNG suppliers lapses.

View Our Investment Portfolios

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.

Publishers Notice

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.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!