- 01Macallum secured $3m at 14c/share.
- 02Funds will advance Perth Basin studies and well planning.
- 03Farm-out talks are underway; drilling targeted for H2 2027.
Macallum New Energy (ASX: MNE) has received firm commitments for a $3 million placement to advance its Perth Basin exploration program and preparations for drilling targeted for late 2027.
The company will issue approximately 21.46 million shares at 14 cents each, with the raising split into an initial placement and a smaller tranche requiring shareholder approval.
Proceeds will support technical studies and well planning across its wholly owned EP 494 and EP 511 permits in Western Australia’s onshore North Perth Basin.
The financing comes as Macallum seeks a farm-out partner for EP 494, where multiple interested parties are examining technical data ahead of a potential exploration campaign.
Two-Tranche Placement
The first tranche comprises 20,598,502 shares to raise approximately $2.88m before costs under the company’s existing placement capacity, with settlement expected on 2 November and allotment on 3 November.
A further 860,072 shares would raise about $120,000, including subscriptions totalling $102,000 from directors, subject to shareholder approval at the annual general meeting on 26 November.
The 14-cent offer price represents a 12.5% discount to the last closing price on 23 October and a 22.1% discount to the five-day volume-weighted average price.
“The placement will enable us to continue advancing our technical work, well planning, and commercial discussions as we work towards these key milestones for the benefit of the company and for our shareholders,” chief executive officer Andy Furniss said.
“With our farm-out process now well underway and with strong interest from multiple parties actively reviewing our technical data, our focus is on securing a suitable partner to support the next phase of exploration, including our targeted drilling campaign in the second half of 2027.”
Exploration Funding and Farm-Out
Macallum intends to direct the proceeds towards seismic interpretation, geological evaluation, well engineering, procurement planning, farm-out negotiations and working capital rather than immediate drilling expenditure.
The EP 494 farm-out process began formally on 14 October, with several parties having signed confidentiality agreements and begun reviewing information in the technical data room.
Management is seeking a partner to contribute to funding up to two exploration wells in the second half of 2027, although any drilling remains dependent on financing and regulatory requirements.
Well selection and a final investment decision for the first exploration well are targeted for the first quarter of 2027, while the farm-out discussions are expected to continue through the remainder of this year.
Prospective Gas Resource
An independent update to EP 494 identified an arithmetic total of 2,506 petajoules in gross unrisked mean prospective gas resources across the assessed portfolio.
The largest individual gas prospect, Barberton Terrace Deep, was assessed at 1,513PJ, with Gadee East at 182PJ and Gadee West at 39PJ, alongside further leads and prospects.
Those prospective resource estimates concern undiscovered petroleum accumulations, and require further exploration and appraisal before recoverable hydrocarbons can be established.
The company is continuing Condor 2D seismic interpretation and other studies to refine its drilling choices, with the placement intended to fund this preparatory work while commercial discussions progress.
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