Conrad Asia Energy Ltd raises A$13 million through successful placement

Conrad Asia Energy Ltd (ASX: $CRD) has successfully completed a placement to raise A$13 million at an issue price of A$0.95 per CHESS Depositary Interest (CDI). The placement received strong interest from both new and existing institutional and sophisticated investors, with demand exceeding anticipated commitments for CDIs under the offer. The proceeds from the placement will be utilized to complete a 3D seismic survey across the shallow water Aceh gas discoveries and continued project costs associated with the Mako gas project, as well as for general working capital.

Executive Commentary on Placement and Future Milestones

Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, expressed his delight with the support received from new and existing institutional investors. He emphasized the significance of recent milestones, such as the completion of FEED studies and approval of the environmental impact assessment, and outlined the company's focus on finalizing gas sale agreements, engaging potential debt finance providers and farm-in partners, and reaching a final investment decision in mid-2024. Xynogalas also highlighted the evaluation of commerciality in the shallow water gas discoveries in Aceh and the potential partnerships in the deeper water high impact exploration portfolio. He further expressed the company's pleasure in providing CDI holders with the opportunity to participate in the capital raising via the security purchase plan.

Utilization of Proceeds and Future Outlook

The successful completion of the A$13 million placement will enable Conrad Asia Energy Ltd to advance its gas projects, particularly the Mako gas project, and progress key initiatives such as finalizing gas sale agreements, concluding the Duyung Production Sharing Contract Farm-Down process, and engaging in project financing discussions. The company also announced a security purchase plan to raise approximately A$2 million, providing eligible securityholders with the opportunity to participate. The proceeds from the placement and SPP will be used for exploration studies and seismic at Aceh, general project costs, and general and administrative expenses. Conrad's focus on reaching key milestones and its ambitious outlook for the Mako development project indicate a positive trajectory for the company's corporate strategy and future prospects.