US-focused oil and gas producer Target Energy Limited is undertaking a renounceable pro-rata entitlement issue to raise up to approximately A$5m.
•Renounceable pro-rata entitlement issue to raise up to approximately $5.0m, with approximately $2.9m of underwriting secured
•Directors to sub-underwrite approximately $1.3 million of the entitlement issue and further $1.4 million of commitments have been received from shareholders
•Target's major shareholder, Wyllie Group Limited, has committed to participate for its full entitlement $0.45m
•Rights issue priced at a 68% discount to 30-day volume weighted average price(1) with one free listed option for every two shares issued to encourage shareholder participation
•Divestment of the West Texas Fairway Project is still planned, however Target will seek to sell into a stronger market
•Fairway oil and gas production remains operating cash flow positive at current oil prices(2)
•Target continues to hold a large working interest in 4,483 acres in the most coveted and prolific hydrocarbon basin in the United States with multiple, thick, oil bearing horizons