Bass Oil (ASX:BAS) secured binding commitments for a $3 million share placement, marking a pivotal step in the company's transition toward becoming a key supplier for the Australian East Coast gas market.
The capital raise, which involves the issuance of approximately 47.6 million new ordinary shares at $0.063 per unit, received robust backing from a mix of existing shareholders and new institutional and sophisticated investors.
Each new share also includes attaching options on a 1-for-2 basis, totalling over 23.8 million options.
Managing Director Tino Guglielmo stated that the strong support for the placement serves as a clear endorsement of the company’s dual-track strategy: capitalising on elevated global oil prices while establishing a foothold in the lucrative domestic gas sector.
The primary allocation of the proceeds will facilitate the final acquisition and recommissioning of the Vanessa gas field and its associated pipeline infrastructure.
The facility is slated to be the first to bring gas into production for Bass, fulfilling a long-held corporate ambition.
Beyond the domestic gas expansion, the funds will be deployed to accelerate Indonesian operations, specifically the drilling of the Bunian 6 oil development well, which is expected to boost oil production by mid-year.
Bass will progress the Kiwi liquids-rich gas project toward a final investment decision.
At the time of reporting, Bass Oil's share price was $0.080.