TMK Energy Secures Additional Funding for Gurvantes XXXV Project
TMK (TMK) Share Update November 2024 Sunday 3rd
TMK Energy Secures $1.8 Million in Funding to Advance Gas Project
TMK Energy Limited (ASX: TMK) has successfully raised approximately $1.8 million through a combination of placement and shortfall, ensuring full funding for its ambitious Gurvantes XXXV Coal Seam Gas Project.
Instant Summary:
- TMK Energy raises $1.8 million through placement and shortfall.
- Funding supports Gurvantes XXXV Coal Seam Gas Project.
- Placement shares offered at an 11% discount to average price.
- Funds to aid commercialisation and partnership opportunities.
Funding Details
TMK Energy Limited has announced the successful raising of approximately $1.8 million (before costs) through a placement and shortfall. The company received binding commitments for a $1.5 million placement, utilizing its existing 7.1A placement capacity, and an additional $0.3 million from the shortfall of a recent Entitlement Issue.
The placement was well-received by both new and existing sophisticated investors, indicating strong market confidence in TMK's projects. The funds raised will ensure that TMK is fully funded to achieve its goal of demonstrating potentially commercial gas flows from its 100% owned Gurvantes XXXV Coal Seam Gas Project.
Project Advancements
The Gurvantes XXXV Project is progressing with its 2024 work program, which is currently advancing on schedule. The final well in the program is being drilled, and the company expects to have six pilot production wells online by the end of the month. This development is crucial for reducing reservoir pressure to the required critical desorption pressure, potentially leading to increased gas rates.
Use of Funds
The additional working capital will be directed towards continued efforts in commercialisation and partnership strategies, preparing for the potential achievement of commercial gas flows in the first half of 2025. This strategic funding will also support ongoing production activities at the Gurvantes XXXV Project.
The successful funding round is a positive signal for TMK Energy, as it demonstrates investor confidence and provides the necessary capital to advance its key project. The ability to attract significant investment at an 11% discount to the average trading price suggests strong belief in the project's potential. This funding is likely to bolster the company's stock performance and enhance its market position.
Investor Reaction:
Analysts are likely to view this funding as a positive development, reflecting confidence in TMK Energy's strategic direction and the potential of the Gurvantes XXXV Project. The successful capital raising could lead to increased investor interest and a positive market response.
Conclusion:
TMK Energy's successful funding round positions the company well for future growth and development. Investors should keep an eye on the progress of the Gurvantes XXXV Project and consider the potential long-term benefits of this strategic funding.