Buru Energy has raised $15 million from investors, plus an additional $5 million under a share purchase plan (SPP) to fund its Canning Basin prospects, Western Australia.
Executive chairman Eric Streitberg said the strong support reflects the exciting exploration program set to begin in mid-June.
“This is the first capital raising undertaken by Buru outside our exciting shareholder base since 2014 and we would like to warmly welcome those new shareholders who have supported the placement,” he said.
The fund raised by the placement and SPP total $20 million and will be applied towards Buru’s 2021 Canning Basin exploration and development program, growth opportunities, and for general working capital purposes.
The company outlined that the funds raised will supplement its existing cash reserves and provide support for ongoing exploration, appraisal and development activities following the 2021 program.
Streitberg thanked its shareholder for their continued support of Buru, and are pleased to provide an opportunity for all eligible shareholders to participate in the company.
“The funds raised will put Buru in a strong financial position to execute its exploration and development strategy within its Canning Basin joint ventures as part of our 2021 program and beyond, as well as to pursue new business opportunities,” he added.
The 2021 program will include three wells and a regional and prospect oriented seismic program.
Terrex Seismic was selected as the preferred contractor for the seismic acquisition program and the contract is expected to be awarded in the coming weeks.