Senex has conducted a raising of approximately AU$55 million via a placement to certain EIG-managed funds and other institutional investors at a subscription price of $0.315 per share.
Senex Managing Director and CEO Ian Davies said the transactions would provide Senex the strength and momentum to develop and expand its significant upstream positions in both the Surat and Cooper Basins.
“We know the Western Surat Gas Project is a great asset, given our understanding of the subsurface and our ability to operate safely and at low cost,” said Mr Davies.
“EIG is a respected global energy investor and their support shows they also see the opportunity for Senex to build a significant east coast gas business.”
EIG will provide funding of up to US$300 million for the Western Surat Gas Project’s acceleration, and currently holds approximately 2.7 per cent of Senex issued capital following on market purchases.
“The Western Surat Gas Project is in a prime position to supply gas into the structurally short east coast gas market,” said EIG CEO R. Blair Thomas.
“EIG has been an early investor in coal seam gas in Queensland since the late 1990s, and we believe now is the opportune time to develop these assets as fundamentals are supportive.
“Senex has the right people to develop the project and in long-term partnership with EIG we believe the company will build a tier-one asset.”
EIG will hold approximately 12 per cent of the expanded Senex issued capital following completion of the Institutional Placement and Share Purchase Plan.