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Pilot welcomes cornerstone investors

31st March 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed oil and gas explorer Pilot Energy would raise some A$3.6-million to fund working capital.

The company reported on Thursday that it had entered into a share subscription agreement with a group of investors, under which the capital would be raised through a two-tranche placement.

The first tranche would consist of 400-million shares, priced at 2c each, to raise an initial A$800 000. The offer price represented a 34% premium to the company’s 30-day volume weighted average share price.

Subject to shareholder approval, the second tranche would consist of more than 933.3-million shares, priced at 3c each, to raise a further A$2.8-million. The offer price for the second tranche represented a 100% premium to the company’s 30-day volume weighted average share price.

Once the share placement had been completed, the subscribers would hold a combined 45.4% interest in Pilot Energy.

“Without a doubt, this transaction is transformative for Pilot Energy, particularly given the current industry downturn under which many of our peer companies are struggling to attract investor interest,” said Pilot chairperson Gavin Harper.

“We see this investment as a resounding endorsement of Pilot Energy’s assets, strategy and management team. This new investment will significantly benefit the company and its shareholders over the coming years, and I firmly believe Pilot Energy will be exceedingly well paced for an industry recovery.”

Edited by Creamer Media Reporter

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