capital raising to fund development projects and g
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ASX ANNOUNCEMENT 11 July 2005 Capital Raising to Fund Development Projects and Gas Reserves Growth The Directors of Arrow Energy NL (Arrow) are pleased to announce a capital raising of $17.5 million, comprising: • a placement to Institutional and Sophisticated Investors who have committed to subscribe for 28.9m shares at 38 cents per share to raise $11 million before issue costs; and • a 1 for 7 pro-rata renounceable rights issue to Shareholders at 36 cents per share to raise approximately $6.5 million before issue costs. The proceeds from the capital raising will be utilised in the development of a number of Arrow’s coal seam gas projects as the company transitions from a successful explorer to gas producer. In addition, funds will also be utilised to prove up additional gas reserves through ongoing exploration, appraisal and pilot production programs. In particular, funds raised together with Arrow’s existing cash reserves will: • provide upstream development funding for Arrow’s share of the Kogan North and Daandine projects; • contribute towards development of the Tipton West project, with the balance of funding for this project proposed to be funded via joint venture and project finance sources; • provide upstream appraisal/pilot funding for the Silverdale, Dundee and Mt Lindesay projects; • provide funding towards Arrow’s share of the exploration and appraisal programs on its projects in the Surat and Clarence Moreton Basins near Brisbane, and the Queensland Coastal Basins near Gladstone; • meet other corporate and offer costs and to provide additional working capital. The Institutional Placement is being undertaken in two tranches. The first tranche of $6,764,000 (17.8m shares) will be settled on or about 21 July 2005 with the second tranche of $4,236,000 (11.1m shares) being subject to the obtaining of shareholder approval at a General Meeting of the Company to be held on 23 August 2005 and will be settled shortly thereafter. The renounceable rights issue is for all Arrow Shareholders on record as at 7.00pm on 27 July 2005 with registered addresses in Australia, New Zealand or Hong Kong. The issue price for shares under the rights issue will be 36 cents per share, a discount of 5% to the Institutional Placement price and a discount of 20% to the closing price of the Company’s shares on the ASX on 6 July 2005. Shares issued under the Institutional Placement will not be entitled to participate in the rights issue. - 2 - Rights trading will commence on 21 July 2005 and end on 16 August 2005. Acceptances under the rights issue close at 5.00pm on 23 August 2005. The rights issue timetable is attached to this release. A prospectus for the renounceable rights issue is expected to be lodged today. The rights issue is fully underwritten by Wilson HTM Corporate Finance Ltd, who also managed the placement to institutional and professional investors. For and on behalf of the Board of Directors JPK Marshall Company Secretary For further information contact: Stephen Bizzell or Nick Davies Phone (07) 3303 0650 Fax: (07) 3303 0651 E-Mail: [email protected] Website: www.arrowenergy.com.au - 3 - Rights Issue Timetable Event Date Rights issue prospectus lodged with ASIC and ASX 11 July 2005 Notice with information on Rights Issue sent to Shareholders 18 July 2005 Shares commence trading on ASX on an ex rights basis 21 July 2005 Rights trading on ASX commences 21 July 2005 Record date for participation in rights issue 27 July 2005 Prospectus dispatched to shareholders 2 August 2005 Rights trading on ASX ends 16 August 2005 Closing time and date for renunciations, acceptances and payment in full under rights issue (5.00pm AEST). 23 August 2005 Dispatched of shareholder statements for new shares under rights issue 31 August 2005 Normal trading commences for new shares on ASX 1 September 2005
AOE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
