L&M Energy looks to future after share purchase

L&M Energy raised $1.4 million in a share purchase plan, adding to its placement in July.

Some 15 percent of the coal seam gas explorer's shareholders participated in the offer, buying shares at 9 Australian cents on the ASX and 11 cents on the NZX.

Two months ago, the company raised A$7 million through a placement to institutional and sophisticated investors in Australia.

"The SPP and placement give the company a strong balance sheet to fund its ongoing growth and I am very excited about our future," said managing director John Bay in a statement.

The successful raising "shows that the market strongly supports the company's strategy and forward plans to establish the first commercial exploitation of coal seam gas in New Zealand."

The funds were raised to set up production testing and confirming the level of reserves in the Ohai gas field in Southland that could be as high as 173 Petajoules.

Production is expected to be underway by the end of the year.

In July, the company said it plans to drill exploration wells in two Taranaki prospects over the next two years, alongside its plans in Southland.

The shares were unchanged at 12.7 cents in trading on the NZX.

- BusinessDesk