Energy: Senex and Tap Oil sign off on deals, while 88E taps insto investors for $6.75m
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There was some deal-making and capital raising among energy stocks, in what was a quiet morning for the sector to end the week.
To start with, Senex Energy (ASX:SXY) said the $50m sale of its gas processing facility is now officially a done deal.
The facility — situated in the Queensland town of Roma — was sold to energy infrastructure company Jemena.
Senex CEO Ian Davies said the all-cash deal would provide the company with flexibility, while also benefiting from a tolling arrangement as the new owner took the gas to market.
“This transaction allows Senex to focus on its core competency of developing natural gas acreage while also benefiting from long-term tolling arrangements with flexible expansion options,” Davies said.
Elsewhere, Tap Oil (ASX:TAP) is now out of the Australian and New Zealand market, after completing the sale of the residual assets in its local portfolio.
Tap sold the assets to Kensington Energy Pty Ltd for a gain on sale of $2.58m, and is now solely focused on exploration, production and development at its Thailand-based Manora project.
Shares in Senex dipped 0.8 per cent to 39.5c this morning, while Tap shares were unchanged.
And lastly, oil producer 88 Energy (ASX 88E) announced it had completed a book-build with institutional and sophisticated investors to raise $6.75m in a share placement done at 12.5c. The company’s stock closed yesterday at 13.5c.
The company said it would combine the money raised with its existing $6.5m cash pile to fund ongoing drilling and exploration activity on the North Slope of Alaska.
Capital will be deployed to fund drilling costs, interest payments and working capital associated with general exploration activity.