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Highlights
- Bounty has received firm commitments to raise AUD 4.5 million through a share placement.
- Additional AUD 500,000 planned under a second tranche subject to shareholder approval.
- Funds will be directed toward oil appraisal and development drilling, production enhancement activities, exploration and assessment of petroleum exploration opportunities.
- Tranche 1 settlement is scheduled for 2 June 2026, with shareholder approval for Tranche 2 expected to be sought in July.
Bounty Oil & Gas NL (ASX:BUY) shares rose 22.58% to AUD 0.038 in morning trade on 1 June 2026 after the company announced it had secured firm commitments to raise AUD 4.5 million through a placement. The capital raising, supported by sophisticated and professional investors, forms part of the company’s broader recapitalisation plan, which received shareholder approval in May 2026.
Oversubscribed Placement Secures Investor Support
The company announced it will raise approximately AUD 4.5 million before costs through the issue of 882.35 million shares at an issue price of AUD 0.0051 per share.
Under the placement, investors will receive one free attaching option for every two shares subscribed, with the options exercisable at AUD 0.01 per share and expiring four years from the date of issue.
The placement was undertaken as part of the recapitalisation initiative first announced in March 2026 and subsequently approved by shareholders at the company's general meeting held on 18 May 2026.
Additional Capital Raising Planned
Investor demand exceeded the initial placement allocation, resulting in the offer being oversubscribed. As a result, the company intends to raise an additional AUD 500,000 through a second tranche, subject to shareholder approval at a future general meeting.
The placement will therefore be completed in two stages. Tranche 1 includes the issue of 784.31 million shares and 392.16 million options, while Tranche 2 will comprise 98.04 million shares and 49.02 million options, pending shareholder approval.
Funds Earmarked for Development and Exploration Activities
The proceeds from the capital raising will support a range of operational and growth initiatives across Bounty's Australian petroleum portfolio.
Key funding priorities include
- Participation in oil appraisal and development drilling programs in Southwest Queensland-based development and production projects.
- Development studies and facility upgrade at the Alton Field.
- Production enhancement and remediation activities at L16 in Western Australia.
- Continued participation in offshore exploration projects.
- The company also plans to allocate capital toward assessing additional petroleum exploration opportunities.
Lead Manager Compensation Structure
Oakley Capital Partners Pty Limited acted as corporate adviser and lead manager for the placement.
As part of its remuneration, Oakley will receive a cash fee equivalent to 6% of gross proceeds, a further 6% of gross proceeds payable in shares, and additional options based on the placement structure.
Securities to be issued to Oakley relating to Tranche 1 have already received shareholder approval, while additional shares and options associated with Tranche 2 will require approval at the upcoming shareholder meeting.
Key Milestones Ahead
Bounty expects settlement of Tranche 1 shares on 2 June 2026, followed by quotation on the ASX on 3 June 2026.
Shareholders are expected to consider approvals relating to Tranche 2 securities and lead manager entitlements at an extraordinary general meeting scheduled for 14 July 2026.
