Oil and gas exploration company AWE (ASX:AWE) has announced a fully underwritten institutional share placement to raise approximately $38 million.
Following completion of the placement, AWE will additionally offer all existing eligible Australian and New Zealand shareholders the opportunity to participate in a share purchase plan to raise $10 million.
The institutional placement will comprise of an issue of around 76.9 million new fully paid ordinary shares at $0.50 a share, and shares will be placed on a trading halt while the placement is underway.
The proceeds from both the capital raising will be used to strengthen the company’s balance sheet and to fund stage 2 of its Waitsia project.
The company is also looking at capital expenditure on other developments, including the next stage of the Casino-Henry gas project.
Shares in AWE (ASX:AWE) are on a trading halt and last traded at 56 cents.