Oil giant Woodside Petroleum Ltd
(ASX:WPL) has announced a $2.5 billion equity raising to strengthen its balance sheet and increase liquidity in preparation for further liquified natural gas development.
The company is to offer one new share for every 12 shares held at an offer price of $42.10 a share representing a 10% discount to the company’s closing price last Friday.
Woodside’s largest shareholder Royal Dutch Shell has confirmed that it will take up its full entitlement representing an investment of around $862 million.
In an update on its business the company says its expected 2009 full year production is at or about 81 million barrels of oil equivalent.
Woodside says it expects a 2010 production range of 70 to 75 million barrels of oil equivalent, following the divestment of its interest in the Otway Gas Project.
Woodside Petroleum’s net profit after tax for calendar 2008 came in at $1.786 billion.
