Sunshine Gas gets a $44m boost Font Size: Decrease Increase Print Page: Print Nigel Wilson | March 18, 2008 A COMBINATION of overseas and domestic institutions as well as sophisticated investors have defied the sub-prime crisis to stump up $44 million for coal seal methane developer, Sunshine Gas.
The company, which has been in a trading halt since Friday, yesterday said it had placed 39.9 million shares at $1.10 each.
Sunshine managing director Tony Gilby said the funds would mainly be used for drilling 40 development wells on its Lacerta field near Roma in western Queensland.
The field has proven and probable reserves of 469 petajoules.
"I think it is pretty good that in this choppy market for funds, that we have been able to attract a number of new institutions on to our register," he said.
Mr Gilby said the company's plan was to ramp up gas production from Lacerta to supply 4-8 petajoules of gas a year to the domestic market from the first half of next year while it was involved in a front-end engineering and design study with Japan's Sojitz Corp on a Gladstone LNG project.
Domestic gas rises sharply in value if it is exported as LNG.
SHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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