Omega Oil and Gas Completes Highly Successful A$6.5 Million Capital Raise
OMEGA OIL & GAS LIMITED (OMA) Share Update August 2024 Tuesday 27th
Omega Oil and Gas Completes Successful A$6.5 Million Capital Raise
Omega Oil and Gas (ASX: OMA) has successfully completed an institutional capital raise, securing A$6.5 million in commitments at the market share price of $0.215.
Instant Summary:
- Omega raised A$6.5 million through institutional capital raise.
- Strong interest led to early closure and scaled placement bids.
- Key shareholders, including the Flannery family and Tri-Star, maintained significant investments.
- New high-quality Australian and international investors joined the register.
- Funds will support expansion, business development, and early development programs.
Successful Capital Raise
Omega Oil and Gas (ASX: OMA) has announced the completion of a highly successful institutional capital raise, securing A$6.5 million in commitments at the market share price of $0.215. The strong interest in the offer led to its early closure, with placement bids being scaled to meet the high demand.
The capital raise was fully supported by Omega's largest shareholders, including the Flannery family (Ilwella Pty Ltd and associated entities) and Tri-Star, who maintained their investments at approximately 29% and 20%, respectively. Additionally, new high-quality, experienced Australian and international resource investment funds and strategic investors have been added to an already strong share register.
Use of Funds
The proceeds from the capital raise will be used by Omega to fund several key initiatives:
- Possible expansion of the current appraisal program.
- Business development opportunities as they arise.
- Acceleration of future appraisal and early development programs if positive results are obtained.
- Corporate funding prior to the receipt of anticipated R&DTI cash refunds.
CEO's Statement
Omega's CEO and Managing Director, Trevor Brown, expressed his delight with the strong response to the capital raise. He stated, 'Omega is delighted with the strong response to the capital raise. The raise was well supported by existing Australian and international shareholders, and we welcome several new, high-quality investors onto the register. The success of the raise reflects strong interest in Omega's exciting, upcoming Canyon-1H project - a significant test of the large resource potential of the Taroom Trough.'
The upcoming Canyon-1H project will see Omega drill a horizontal well section ahead of a planned multi-stage hydraulic stimulation and flowback trial to test for potentially commercial flow from the Canyon Sandstone. The Taroom Trough is emerging as a likely new source of urgently needed gas in Eastern Australia.
Placement Summary
Omega will issue 30,232,558 shares across two tranches:
- Tranche 1 – 13,150,466 shares raising $2,827,350 (before costs), under Listing Rule 7.1.
- Tranche 2 – 17,082,092 shares raising $3,672,650 (before costs) subject to shareholder approval.
The total amount raised of $6.5 million includes $1,840,000 from Ilwella and its associated entities, and $1,287,650 from Tri-Star. This successful capital raise was completed by Prenzler Group Pty Ltd, Omega's Capital Markets Advisor and Lead Manager.
The successful capital raise is a positive indicator for Omega Oil and Gas, reflecting strong investor confidence in the company's future projects, particularly the Canyon-1H project. The funds raised will provide Omega with the flexibility to expand and accelerate its appraisal activities, undertake early development planning, and seize business development opportunities as they arise. This is likely to have a favorable impact on the company's stock price and investor sentiment.
Investor Reaction:
Analysts are likely to view the successful capital raise as a positive development for Omega Oil and Gas. The strong support from existing shareholders and the addition of new high-quality investors indicate confidence in the company's future prospects. The funds raised will enable Omega to advance its key projects and potentially unlock significant value for shareholders.
Conclusion:
Investors should keep a close eye on Omega Oil and Gas as the company progresses with its Canyon-1H project and other initiatives funded by the recent capital raise. The successful completion of the raise and the strong support from investors highlight the potential for significant growth and value creation. Stay informed and consider the potential long-term benefits of investing in Omega Oil and Gas.