Lakes Blue Energy (ASX:LKO) Secures $6.5M Placement for Wombat 5 Drilling
Placement Details
Lakes Blue Energy NL (ASX:LKO) has secured firm commitments to raise $6.5 million through the issuance of approximately 8.7 million new shares. The placement is divided into two tranches: Tranche one for $5.995 million and Tranche two for $502,500, pending shareholder approval.
Use of Funds
The raised funds will be allocated to the drilling and testing of the Wombat 5 appraisal well in Petroleum Retention Lease 2 and to provide sufficient working capital for the year ending June 2026. Upon completion, the company is expected to have a pro forma cash balance of approximately $9.4 million.
Financial Position
Post-placement, Lakes Blue Energy will be well-funded to advance its operations and finalise the Wombat 5 drilling program. The placement price is set at $0.75 per share, reflecting a 25% discount to the last traded price of $1.00 before suspension.
Executive Comments
Chairman Roland Sleeman stated, “Lakes is delighted with the market’s response to our placement, and we look forward to utilising these funds to drill Wombat 5 and hopefully developing a substantial gas field to assist Victoria alleviate its forecast gas shortages.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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