PERTH (miningweekly.com) – Oil and gas explorer and producer AWE is hoping to raise about A$48-million through an institutional share placement and a share purchase plan (SPP).

The ASX-listed company on Wednesday announced that it would issue 76.9-million shares, at a price of 50c each to institutional investors, to raise an initial A$38-million.

The shares will be issued under the company’s existing placement capacity, and as such will not require shareholder approval.

A further A$10-million share raising is being targeted through an SPP, with eligible shareholders able to subscribe for up to A$15 000 in new shares. AWE said that the issue price for the SPP would be the lower of the institutional placement price and the five-day volume-weighted average price for AWE shares, ending on the closing date of the SPP offer.

The funds raised will go towards strengthening the company’s balance sheet and to provide sufficient equity to fund its share of the Waitsia Stage 2 project, if a build-own-operate model is selected, or to in part fund AWE’s share if an engineering, procurement, and construction development model is selected.

AWE and its JV partner Origin Energy are targeting a final investment decision on Waitsia Stage 2 by the end of this year, and first gas from the project is targeted for 2020.

The Stage 2 development could supply 10%, or some 100 TJ/d, of Western Australia’s domestic gas demand for ten years.

“AWE is firmly focused on delivering its key growth initiatives, particularly Stage 2 of the Waitsia gas project, and the marketing of our uncontracted east coast gas reserves,” said CEO and MD David Biggs.

“This equity raising will provide partial funding for Stage 2 of the Waitsia gas project while providing AWE with the flexibility to achieve the best possible outcomes in terms of east and west coast gas sales and the construction options for the Waitsia Stage 2 facilities. It will also strengthen our balance sheet ahead of refinancing our existing debt facility.”