Innamincka Petroleum Ltd (ASX:INP) scrambles to secure financing for a stake in BassGas project

Company News

Oil and gas company Innamincka Petroleum Ltd (ASX:INP) has received an extension of a trading halt on its shares as it scrambles to secure financing for a stake in the BassGas project.

The Australian Financial Review reports that the company agreed last November to buy a 7.5% stake in the project, in Bass Strait off Victoria, for $40 million.

The company’s shares went into a trading halt last Monday pending a capital raising and it has since been extended to allow more time for the raising.

Should the financing fall over, fellow oil and gas company AWE is entitled to buy the stake.The deadline for sealing the deal is believed to have been yesterday.

In a presentation lodged with the ASX on Thursday, Innamincka said it was hoping to raise $27 million for a 5% stake through a $10 million convertible bond issue to a cornerstone investor and a $17 million equity raising.

Innamincka Petroleum Ltd reported a loss of $27.27 million for fiscal 2009.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?