Sydney, 27 March (Argus) — Australian independent Beach Energy plans to raise A$345mn ($362mn) to finance exploration and development of its shale gas reserves in the Cooper basin in central Australia.
The capital, raised through a combination of a share issue and an unsecured convertible note issue, will also fund continuing appraisal and development of oil discoveries in Egypt and its exploration activity in Tanzania, Beach said today.
The company will raise A$195mn through a rights issue at a price of A$1.40 for each new share and the remaining A$150mn will be raised through the note issue due in 2017.
“We believe that in order to underpin this next phase of the company growth, an appropriate level of capital is required to ensure we are self funded for the foreseeable future,” said Beach managing director Reg Nelson.
Beach estimated that it would need to spend up to A$600mn to carry out all its activities.
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