In August 2013, Buru Energy announced a capital raising to fully fund the Ungani oil development, the 2013/14 conventional oil exploration program, and the proposed 2013/14 Laurel Wet Gas appraisal program.
Highbury Partnership acted as Buru Energy’s Sole Financial Adviser, raising significant new funds from a variety of sources and achieving minimum equity dilution:
- Underwritten institutional equity placement – $35 million
- Non-underwritten share purchase plan – $5 million
- Senior debt facility – US$30 million
- Acceleration and reallocation to Ungani of existing funding commitments from Buru’s long term partner, Mitsubishi Corporation – $27.5 million
- Agreement from Alcoa to release escrowed funds, to be applied to the Laurel Wet Gas appraisal program – $20 million
As a result of this injection of new capital, Buru Energy is fully funded through to substantial cashflow at its Ungani Oilfield, and completion of well stimulation and flow testing at its Laurel Wet Gas project.
