AWE seeks up to $48m to fund Waitsia gas project

The Waitsia site

AWE will raise up to $48 million through a share placement and purchase plan to help fund stage two of its Waitsia gas project in Western Australia.

The company today announced it would raise about $38 million through an institutional share placement. It will follow the placement with a share purchase plan for eligible shareholders to raise up to an additional $10 million.

AWE will use the proceeds for a range of purposes, including to fund the next stage of the Waitsia project, which it owns 50 per cent of in a joint venture with Origin Energy.

The company said the capital raising would provide sufficient equity to fund its share in the stage two project if a ‘build own operate’ development is selected. The raising would also fund AWE’s share if an engineering, procurement and construction (EPC) development model is chosen.

AWE said the funds raised would also be used to strengthen its balance sheet, and for other existing portfolio development and growth opportunities.

David Biggs, AWE chief executive and managing director, said the company was firmly focused on delivering its key growth initiatives, particularly stage two of the Waitsia project and the marketing of its uncontracted east coast gas reserves.

“The successful Waitsia appraisal program has substantially de-risked the field’s sub-surface modelling and proved up substantial additional reserves,” Biggs said.

AWE expects to settle the institutional placement on November 20.