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The company said institutional and sophisticated investors had committed to a placement of five million shares at A$1 per share to raise A$5 million. In addition, CH4 announced a 1 for 5.25 renounceable rights issue to shareholders at A$0.93 per share (a discount of about 15%) to raise A$15 million.
The funds will enable CH4 to capitalise on new opportunities in north and central Queensland’s rapidly growing industrial markets, CH4 chairman Lou Rozman said.
“CH4 has been presented with a window of opportunity to be a key supplier of gas to the rapidly expanding markets of Townsville and Gladstone,” Rozman said.
“The first step in the process of securing additional sales contracts is to prove up additional gas reserves and the company will embark on an extensive exploration and drilling program too achieve this.”
In 2004 the company increased its gas reserves by 80% and received a 23% increase in the quantity of gas required buy its main customer, Enertrade, for 2006.
