Photo by: Bloomberg
PERTH (miningweekly.com) – Oil and gas major Beach Energy has raised about A$201-million of its A$301-million target through an institutional entitlement offer to partially fund the acquisition of Lattice Energy from fellow-listed Origin Energy.
Beach CEO Matt Kay told shareholders on Monday that the company was pleased with the support that institutional shareholders had shown for the acquisition.
“A near record institutional take-up level of over 98% demonstrates this and is an endorsement of the transaction's compelling logic. The acquisition of Lattice is transformational for Beach as it delivers a step-change in production, operating capabilities and geographic exposure.”
The retail component of the entitlement offer will now be undertaken to raise the remaining A$100-million, through a three-for-fourteen accelerated nonrenounceable pro-rata entitlement offer.
The retail offer will open on October 5 and close on October 16.
Beach recently struck a A$1.58-billion deal with Origin Energy to purchase Lattice, which holds a 67% interest in the Otway gas project, in Victoria, as well as interest in various adjacent exploration permits, along with the Halladale, Speculant and Black Watch gasfields in the Otway basin. Lattice also owns a 42.5% interest in the Bass gas project, also in Victoria, as well as interests in discoveries located in nearby exploration permits.