Eon NRG Limited to Develop its PRB Project through A$2.8 million Capital Raising

  • Feb 25, 2019 AEDT
  • Team Kalkine
Eon NRG Limited to Develop its PRB Project through A$2.8 million Capital Raising

Energy company, Eon NRG Limited (ASX: E2E) is involved in the exploration of high impact value add resources in North America. The company’s Oil and Gas division owns and operates producing oil and gas fields in the onshore USA and its battery Minerals Division is in the early stages of development, focused on the onshore USA at this stage.

Recently in the December quarter, the company finalized the acquisition of 15,000 acres in the Powder River Basin (PRB), and it is now focused on the development of the PRB Project. PRB Leases are surrounded by developed oilfields which have long lived production and the potential drill prospects at PRB will target oil from multiple formations including the Turner, Dakota and Minnelusa.

To raise capital for the development of PRB Project, the company has recently announced a pro-rata renounceable entitlement offer of new Eon ordinary shares on the basis of 1 New Share for every existing share held as at the record date of 7.00 PM (AEDT) on 11 February 2019 to raise up to approximately A$2.845 million (before costs). The Offer is partly underwritten by the lead manager, CPS Capital Group for $1.2 Mn. The group has lodged the Prospectus of the Entitlement Offer on 6 February 2019 with the Australian Securities and Investments Commission (ASIC), in relation to an offer of approximately 406,389,160 new shares at an offer price of $0.007 per Share to raise around $2.845 Mn. The closing date for the acceptance is 28 February 2019 and it is expected that the share will be started normal trading on ASX on 7 March 2019. As announced on 15 February 2019, the company has already dispatched a copy of the prospectus and a personalized Entitlement and Acceptance Form in relation to the entitlement offer, to Eon shareholders with registered addresses in Australia and New Zealand who held Eon shares as at the record date of 7.00PM (AEDT) on Monday, 11 February 2019.

As per the prospectus, from the total proceeds of the offer, $170,000 will be used for well-permitting costs, $2,505,000 will be used in working capital including well drilling costs, and rest $170,000 will be used for the costs of the Offer.

Recently in the December quarter of 2018, the company reported solid oil and gas production with total barrels of oil equivalent of 49,078 (BOE) with an average of 533 BOEPD.

For the December quarter, the company reported net cash outflow from operating activities of A$172k, net cash outflow from investing activities of A$223k and net cash used in financing activities of A$42k. As at 31 December 2018, the company had cash and cash equivalent of A$1.655 million.

Now, let’s have a quick look at the Eon NRG Limited’s stock performance and the return it has posted in the last few months. E2E’s shares traded at $0.007 with the market capitalization of ~$5.69 Mn as on 25 February 2019 (AEST 4:00 PM). The stock has provided a YTD return of -1.56% & also posted returns of 12.50%, -58.55%, -53.68% over the past six months, three & one-months period respectively as on 22 February 2019. It had a 52-week high price of $0.031 and touched 52 weeks low of $0.004, with an average volume of ~7,772,757.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK