Nexus Energy announces $122M capital raising

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Nexus Energy Ltd (ASX:NXS) has announced a $122 million capital raising to refinance debt and pursue growth.

The oil and gas producer will undertake a fully underwritten 3 for 10 accelerated renounceable entitlement offer to all eligible shareholders.

The offer price of $0.40 cents per share represents a 14.8 per cent discount to the stock’s theoretical ex-rights price.

Nexus’s largest institutional shareholder, M&G Investment Management has committed to take up its entitlement in full.

Managing Director Richard Cottee says the raising will enable Nexus to restructure the existing Longtom debt facility, fund the Crux liquids project through to a final investment decision this year, and also, pursue a targeted drilling strategy at its 100 per cent owned Longtom South major gas development prospect.

Nexus Energy reported a net profit of $32.5 million in the first half of its 2011 financial year.