Bow Energy Limited (ASX:BOW) (PINK:BOWYF) today announced that it will undertake an institutional placement of new ordinary shares ("Placement") to raise approximately A$48 million. In addition to the Placement, Bow will offer eligible shareholders the right to participate in a Share Purchase Plan ("SPP") capped at A$30 million, details of which will be sent to shareholders shortly.
Further details of the capital raising, along with a business update, are included in the attached Investor Presentation.
Upon a successful completion of the Placement, Bow will be in a strong cash position which will be used primarily to fund coal seam gas activities (CSG) including:
- Ongoing exploration and appraisal activities;
- Production pilots;
- Field infrastructure and pipeline approvals; and
- Completion and commissioning of Bow's 100% owned 30 MW Blackwater Power Project.
Merrill Lynch International (Australia) Limited and Wilson HTM Corporate Finance Limited are acting as Joint Lead Managers for the Placement.
Bow shares will remain in trading halt pending completion of the Placement.
About Bow Energy Limited:
Bow Energy Limited's (ASX:BOW) (PINK:BOWYF) is an S&P ASX 200 All Australian Index and S&P ASX 300 Index Company. The company's primary business is the discovery and commercial production of Coal Seam Gas (CSG) and conventional oil fields, with projects in several of Australia's producing basins.
The company is focused on expanding its CSG reserves, with eight CSG projects located within the highly prospective Bowen and Surat Basins of Queensland, and developing production for domestic and export natural gas customers.
The company has GIP potential across its CSG projects of over 13.8 Tcf and to date has certified net gas reserves of 2,360 petajoules (PJ) of 3P and 114 PJ of 2P. A record drilling program is underway for 2010, targeting year-end reserves of 4,128 PJ of 3P and 455 PJ of 2P.
Bow is currently developing the Blackwater Power Project, Bow's 100% owned 30 megawatt power station near Blackwater, central Queensland, which is scheduled for commissioning by the end of the first quarter 2011.
Contact: John De StefaniChief Executive OfficerTel: +61-7-3238-6300Peter HarbisonChief Financial OfficerTel: +61-7-3238-6300
Bow Energy Limited
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