Jadestone Energy Inc. has conditionally raised US$110 million (£83.9 million), upsized from US$95 million, with new and existing institutional investors.

Highlights of the Placing

• The fundraising was comprised of a placing and direct subscription for an aggregate of 239,711,474 new common shares at 35 pence per share (“Fundraising Price”) raising gross proceeds of US$110 million
• New Shares represent 108% of the Company’s pre-fundraising issued share capital
• The Fundraising Price was equal to the closing price of the Company’s shares on the TSX Venture Exchange (“TSXV”) on 16 July 2018, C$0.61/share
• Certain Directors and members of the management team and persons connected to them have collectively subscribed for US$1.265 million

The net proceeds of the fundraising will be used as follows:

• Equity financing for the Montara acquisition: US$80 million
• Partal funding of Stag infill well: US$5 million
• Partial funding for the cancellation of the Company’s convertible loan facility with Tyrus Capital Event S.à r.l.: US$15 million

Paul Blakeley, President and CEO commented,
“We are delighted to have completed our equity placing and see this as the capital market’s recognition of the exceptional value we are generating through executing on the Jadestone strategy.  With the full support of our new and existing investors, we expect to complete the Montara project acquisition in addition to commencing an infill drilling programme at Stag.  This will create a core business in Australia capable of generating sufficient cash flow to fund our development portfolio, and with excess cash for further growth through acquisitions or for return to shareholders.  This activity will deliver strong growth in the business to circa 30,000 boe/d by 2024.  

“Market interest has exceeded our expectations, resulting in the opportunity to increase the placing by US$15 million and to cancel our convertible facility.  This simplifies our balance sheet with the previously announced Montara RBL debt financing and common equity only. 

Jadestone is now well positioned to deliver material scale, growth and exceptional value for our shareholders, and with the added liquidity and visibility we will realise with our AIM listing, provides a significant step forward in building a leading independent upstream company in the Asia Pacific region.”