New shares pave way to finance energy growth plans
KUCHING: Reservoir Link Energy Bhd (RLEB) has fixed the issue price for its private placement at 25.7 sen per share.
The issue price represents a discount of 2.8 sen, or about 9.79 per cent, to the five-day volume-weighted average market price (VWAP) of RLEB shares of 28.49 sen up to and including Aug 6, the market day immediately preceding the price-fixing date.
In a filing with Bursa Malaysia, RLEB said the private placement involves up to about 38.11 million new ordinary shares, representing up to 10 per cent of its total issued shares, to independent third-party investors.
The company has also proposed a bonus issue of up to about 68.87 million Warrants B on the basis of one warrant for every six existing RLEB shares held on an entitlement date to be announced later.
Based on an illustrative issue price of 21 sen per placement share, RLEB expects to raise gross proceeds of up to about RM8 million from the private placement.
Of the proceeds, RM7.64 million, or 95.5 per cent, will be used to finance its oil and gas projects within 12 months, with the balance going towards expenses related to the placement exercise.
The fundraising comes as the group expands its oil and gas activities following several recent contract wins.
These include an award from Hibiscus Oil & Gas Malaysia Ltd for third-party subsurface review and technical assurance services for the PM3 carbon capture and storage project.
RLEB also secured a work order from ROC Oil (Sarawak) Sdn Bhd for perforation and related well continuity services covering the D35, D21 and J4 oil fields under a panel contractor arrangement extending to 2029.
The group said it continues to actively participate in tenders and pursue additional contract opportunities in its oil and gas segment.
On the bonus issue, RLEB said the exercise of all Warrants B at an illustrative exercise price of 21 sen each could raise gross proceeds of up to about RM14.67 million.
Any proceeds raised from the exercise of the warrants will be used to fund the group’s business expansion and working capital.
