18 November 2010,


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.”






Contact us

Email News Update Sign Up Contact Details

PO Box 1487
Mudgeeraba QLD 4213

LoginTell a FriendSign Up to Newsletter