cap raising without invester inclusion, page-11

Eric did an excellent job - for all shareholders.
Chris has kindly taken the time to educate some posters here with how a professional investor would have viewed this capital raising - from the existing shareholders' point of view. There is no hard and fast rule - a SPP is not always in PI's interest. One other point - this is such a small issue $ wise that if well subscribed by PIs the allocation would have been relatively small. Just not worth the risk being exposed to current global events.
Just look at BPT.

Article below for your info.


Buru Energy defies the gloom to raise $50m
From:The Australian today

The global oil supply picture is looking the most positive in years, notwithstanding any disruptions to Iranian exports.

ANY company, especially any oil company, raising money at present needs to have a fairly plausible story.

We saw Brent crude prices falling again over the week, largely attributable to the jitters from the eurozone crisis. This is being written before the results of the Greek election are known, but even a good result -- if any of the possible results could be considered good -- will lift markets for only a few hours or days. A week ago, the Spain bailout euphoria lasted one trading day before the gloom clouds returned.

South Korean oil refiner Hyundai Oilbank has shelved its $US2 billion ($2bn) IPO. The float would have had to battle two worries -- the general market sentiment and also the fact that this refiner sources 20 per cent of its crude from Iran. But, as some reports have also noted, oil refiner shares generally have been struggling of late.

Which is some context for the announcement on Friday that Buru Energy (BRU) has raised $50 million through an institutional placement. The bookbuild was described as "well oversubscribed".

Buru has really taken off over the past year, its shares rising from 52c to $3.85 (and closing on Friday at $3.18, a little dented by the $3 bookbuild price).

The money will be used for the company's projects in the Canning Basin. This basin, with Broome and Derby as its ports, has an interesting oil and gas history. Drilling began there in the 1920s and altogether 250 wells have been sunk over the decades since.

Buru's argument is that the basin was effectively "embargoed" for 20 years due to the 1987 sharemarket crash, low oil prices ($US10/barrel in 1998 following the Asian crisis), therefore no money for exploring (especially in seemingly unprepossessing locations) and, on top, there were Native Title complications.

Those issues are now well behind the company. It has two small wells in production and, for the bigger fish, Mitsubishi as a joint venture partner.

And there is something that was not even dreamed about 20 years ago -- shale gas. The Canning Basin has been identified as the largest potential shale gas play in Australia with a target of a recoverable 229 trillion cubic feet, against 85tcf in the Cooper Basin shales, 59tcf in the Perth Basin and 23tcf around Maryborough in Queensland.

Toronto-based Casimir Capital believes Buru's Goldwyer shale play could become "Australia's Bakken" -- a reference to the vast shale structure underlying North Dakota, Montana and Saskatchewan. Drilling is planned next year.

We should find out something about the Goldwyer shale before then, though. New Standard Energy (NSE) has its rig on site at its chunk of the Goldwyer and plans to spud the first well mid-July. Its partner, Conoco Phillips, is prepared to spend up to $119m on the project.

Cheers, GB