Triangle Energy Secures $4 Million for High-Impact Perth Basin Drilling
TRIANGLE ENERGY (GLOBAL) LIMITED (TEG) Share Update July 2024 Monday 29th
Triangle Energy Raises $4 Million for Perth Basin Drilling
Triangle Energy (Global) Limited (ASX: TEG) has successfully raised $4 million through a placement to fund its upcoming drilling campaign in the Perth Basin. This marks a significant milestone for the company as it embarks on its first drilling campaign in many years.
Instant Summary:
- $4 million raised via placement to institutional, sophisticated, and professional investors.
- Funds to be used for exploration and drilling of Perth Basin assets.
- Booth-1 well to spud by Wednesday, 31 July 2024.
Fundraising Details
Triangle Energy (Global) Limited has announced that it has successfully raised A$4 million through a placement of new fully paid ordinary shares. The shares were issued at a price of 1.5 cents each, representing an 11.8% discount to the last ASX closing share price of 1.7 cents. Each share comes with one listed option, exercisable at 2.5 cents with an expiry date of 30 June 2025, subject to shareholder approval.
The placement was well-supported by both new and existing institutional, sophisticated, and professional investors. The funds raised, along with the company’s existing cash reserves, will be used to fund the exploration and imminent drilling of Triangle’s Perth Basin assets, specifically L7 and EP 437, and for general working capital purposes.
Drilling Campaign
The Booth-1 well is on track to spud by 31 July 2024. This well will test multiple oil and gas targets, including the Kingia and other early Permian formations, the Dongara formation, and Mt Horner equivalent oil sands. The total Prospective Resource range targeted by the well is between 113 Bcf and 540 Bcf of gas, with a Best Estimate of 279 Bcf (Gross 100%, on-block).
Managing Director Conrad Todd expressed excitement about the upcoming drilling campaign, stating, 'This Placement ensures the Company is in a strong position as we enter this transformative period. The overwhelming support from both existing shareholders and new investors highlights the strong support for our strategy.'
Placement Details
The placement involves issuing approximately 266,666,667 new fully paid ordinary shares. Settlement of the Placement Shares is scheduled to occur on Monday, 5 August 2024. The shares will rank equally with existing ordinary shares from the date of issue. Euroz Hartleys Limited acted as Sole Lead Manager to the Placement, while Peak Asset Management was Co-Manager.
Strategic Importance
This fundraising and subsequent drilling campaign are critical steps for Triangle Energy as it focuses on its highly promising Perth Basin exploration assets. The company is also approaching the final stages of divesting the Cliff Head oil field, which will further strengthen its financial position.
The successful fundraising and upcoming drilling campaign are likely to have a positive impact on Triangle Energy’s stock. The company’s focus on high-impact exploration in the Perth Basin, combined with the divestment of the Cliff Head oil field, positions it well for future growth. Investors may view this as a strong strategic move, potentially boosting the stock price.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the strong support from institutional investors and the strategic focus on high-potential assets. The imminent spud of Booth-1 and the substantial prospective resources could generate significant investor interest.
Conclusion:
Investors should keep a close eye on the progress of the Booth-1 well and the overall drilling campaign in the Perth Basin. Triangle Energy’s strategic moves, including the divestment of the Cliff Head oil field, indicate a focused approach to maximizing shareholder value. Subscribing to updates and staying informed about the company’s developments will be crucial for making informed investment decisions.