BOW TO RAISE $78M

Written on the 18 November 2010

BOW TO RAISE $78M

BOW Energy Limited (BOW) will raise $78 million to fund its coal seam gas (CSG) operations, which includes exploration and completion of the Brisbane-based company’s Blackwater Power Project.

The capital will be raised through an institutional placement of new ordinary shares worth $48 million and a share purchase plan capped at $30 million.

Bow announced increased Blackwater 3P certified gas reserves by 15 per cent on Monday, while CEO John De Stefani (pictured) says the company has commenced drilling of the Barta-1 well, which is 4.2km north-west of the Cuisinier-1 oil field.

"Given the pleasing sustained oil production rate from Cuisinier-1 well, we are keen to progress further appraisal and development in vicinity of the Cuisinier oil discovery. Cash flows from the oil projects will supplement the company's very promising Bowen and Surat Basin coal seam gas projects," he says.

Company secretary Duncan Cornish announced a trading halt today pending completion of the placement, which will be led by managers Merrill Lynch International (Australia) and Wilson HTM Corporate Finance Limited.

RBS Morgans senior analyst Nik Burns called a speculative ‘buy’ on BOW shares today with no target price.

“The size of the prize could be big, but we'll feel a whole lot more comfortable on the entire BOW investment thesis once we see the gas coming out of the ground at a rate that will make them money. We think they'll get there, with the help of the funds they're raising,” he says.

“We believe that BOW's proximity to Gladstone, coupled with our belief that there will be opportunities to sell gas into LNG on an ‘arms length’ basis justifies our speculative buy call.”


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter