Senex Energy has announced that specialist energy investor EIG Global Energy Partners will become a substantial shareholder and work to set up a funding model to speed up development of the Western Surat Gas Project in Queensland.
Senex has conducted raising of approximately A$55m ($41.6m) via a placement to certain EIG-managed funds and other institutional investors at a subscription price of A$0.315 per share
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Senex has offered eligible shareholders to participate in a share purchase plan, for which the cap is at A$40m.
In addition to working together to develop an appropriate funding model for the Western Surat Gas Project, the firms will work on other growth projects within Senex’s portfolio, which will see EIG’s participation in funding.
EIG development funding is up to A$300m ($226m) for Western Surat Gas Project acceleration.
EIG currently holds approximately 2.7% of Senex issued capital following on-market purchases.
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By GlobalDataEIG will hold around 12% of the expanded Senex issued capital following completion of the institutional placement and share purchase plan.
Queensland Resources Council chief executive Ian Macfarlane said: “The QRC is pleased that foreign investors continue to have confidence in Queensland projects, despite recent reports that foreign investment was cooling due to the uncertain political climate in Australia.”
“This international negative perception is due to political interference in the NSW and Victoria gas exploration sector. This politicisation has completely stalled gas exploration in southern states.
“It’s great to know that Queensland continues to lead the way and prop up our southern neighbours.”
Last week, Queensland Minister for Natural Resources and State Development Dr Anthony Lynham announced the state government would release land in the Surat Basin for a pilot gas exploration project with an ‘Australia-only’ sale condition.
