In July, Arrow Energy announced a capital raising of $17.5 million towards funding the Kogan North, Daandine and Tipton West coal seam gas projects. It will be used to prove up additional gas reserves through ongoing exploration, appraisal and pilot production programs.

Together with the company’s existing cash reserves, this will provide upstream development of Arrow’s share of the Kogan North and Daandine projects; contribute towards development of the Tipton West Project – the balance of funding here is proposed 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 the company’s projects in the Surat, Clarence-Moreton and the Queensland Coastal basins; and meet other corporate and offer costs, as well as providing additional working capital.

The capital raising will include a placement to institutional and sophisticated investors who together have committed to subscribe for 28.9 million shares to raise $11 million before issue costs and a 1 for 7 pro-rata renounceable rights issue to shareholders at 36% per share to raise approximately $6.5 million before issue costs.