Central completes entitlement offer By Martin Kovacs, 5 Sep 2017

Central Petroleum has advised that it has completed its five-for-12 non-renounceable pro rata entitlement offer, with 180,499,020 fully paid ordinary shares having been offered to eligible shareholders, with Central receiving valid applications for approximately 102,900,000 new shares, representing a take-up of approximately 57%.

Central advised that it received valid applications under the shortfall facility for approximately 7.6 MM new shares, and in aggregate raised gross proceeds of approximately $11.05 MM under the offer, representing a take-up by eligible shareholders of approximately 61.2%.

The shortfall of approximately 70 MM new shares (approximately $7 MM) under the offer will be allotted to the joint lead managers Macquarie Capital (Australia) and Morgans Corporate or sub-underwriters on the terms of the underwriting agreement, Central stated.

“The support for the company from existing shareholders at a 61% take-up is very pleasing given that 36% did not vote in the recent scheme of arrangement,” Central Managing Director Richard Cottee stated.

“Now that the company is appropriately capitalised, with four promising brownfield appraisal wells to be drilled in the next six-to-nine months, with transportation costs experiencing downward pressure, strong institutional support and a tight domestic gas market, our future has never looked brighter. Let the rocks speak.”