BPH Energy secures $1.9m to fund hydrocarbon projects and Cortical Dynamics
Diversified hydrocarbon and biotechnology development company BPH Energy (ASX: BPH) has come out of a five-day trading halt to confirm the successful completion of a capital raising to support a number of its growth projects.
New high-net-worth, family office and institutional organisations were amongst the investors that participated in a placement that received binding commitments to raise $1.9 million.
The placement will comprise the issue of 95 million new fully paid ordinary shares in the company at an issue price of $0.02 per share.
The placement offer price of $0.020 per share represents a 16.7% discount to BPH’s closing price on Wednesday, 6 September 2023 of $0.024 per share and a 16.1% discount to the 15-day volume weighted average price (VWAP) of $0.02385 per share.
Everblu Capital and 62 Capital will act as joint lead managers for the placement.
Settlement of the placement is expected to be completed on 13 September 2023.
Hydrocarbon project funding
BPH executive director David Breeze said the proceeds will provide the company with a strong cash position to fund its hydrocarbon projects.
“The continued support from existing sophisticated and institutional investors is appreciated and we welcome the new shareholders to the company,” Mr Breeze said.
“The strong response to the placement indicates a high level of interest in all our activities, including the growing recognition of the importance of PEP-11 to securing Australia’s energy supply, the huge commercial opportunity we are developing with the BARM and the prospectivity of our clean hydrogen investment.”
Use of funds
BPH has nominated a number of projects to receive funding support via the capital raised in the placement.
Leading the way will be the allocation of $1.5 million for funding for exploration and development of its oil and gas investments.
A further $0.2 million will go towards further investment in clean hydrogen technology, while $0.1 million will be invested in funding for Cortical Dynamics which is developing next generation brain function monitoring devices, including the brain anaesthesia response monitoring system (BARM).
PEP-11 exploration a major focus
The majority of the $1.5 million oil and gas exploration funding is expected to go towards supporting BPH’s investee firm Advent Energy and its plans for the high-profile PEP-11 permit in the offshore Sydney Basin.
BPH holds a significant 36% interest in Advent, an unlisted oil and gas explorer with assets in the Sydney Basin and off the northwest coast of Australia.
Advent and its joint venture partner Bounty Oil & Gas (ASX: BUY) are currently in discussions with relevant authorities over the granting of a variation to work program conditions and related permit extension for the PEP-11 licence.
The JV is also investigating the potential to contract a mobile offshore drilling unit (MOPU) to drill the Seablue-1 well on the large Baleen prospect.
It has already instigated discussions with a number of drilling contractors, along with other local permit operators who have recently contracted rigs for work in the Australian offshore beginning in the first half of 2024.