Key Petroleum Limited Capital Raising Opportunity

Key Petroleum Limited (ASX: KEY) placement of fully paid (listed) ordinary shares for Sophisticated Investors.

The Indicative Term Sheet below specifies the Indicative Timetable and terms and conditions on which the Placement will proceed.

KEY has not promoted for 2 years while it quietly acquired some strategic and quality Cooper basin acreage while the majors were offloading during the Oil downturn. $600k is already committed by 2 existing top 10 shareholders. There is only $400k left. Priced at 1c for a 20% discount. KEY plans to immediately start a roadshow and marketing campaign once the placement is settled. The stock is very tight with only about 20% free float. Directors and associated entities have a large percentage of the company.

Activity in KEY’s basin:

  • EIG private equity takeover of Santos and the same crowd involved with SXY.
  • Renewed interest in the Cooper basin with multinational companies returning

Key is now restructured and focused in the Cooper Eromanaga basin in Queensland. This transaction has enabled Key to focus largely on the gas story and a large part of the acreage (ATP 924) is focused around the Carpentaria pipeline. That pipeline runs to Mt Isa and will be linking up with the future NGP pipeline that will connect the NT to the east coast.

 

Near Term Catalysts: 

–          Change in Work Program in recently acquired acreage and new prospects;

–          Canning Basin Divestment (possibility discussed publicly);

–          Focus on East Coast Gas Supply:

o   Potential Gas Resource Size and indications of gas in acreage and discussion of peers; and

o   Commerciality and strategy around Carpentaria pipeline/offtake/non-binding MoU – what is happening with the infrastructure

–          Activities in relation to Cooper Basin exploration activities and drilling

–          Perth Basin Exploration Updates (drilling back end of year potentially)

 

Click Here for the KEY Investor Presentation

 

To Register your interest, please contact Braden Gardiner at support@tradesetup.com.au or Lead Manager Ben Faulkner on the details in the Indicative Term Sheet below.

 

Indicative Term Sheet

About Key Petroleum Limited Key Petroleum Limited (“Key”) is a focused Australian exploration company that holds a highly prospective portfolio of conventional oil and gas exploration projects which include:

·         Conventional oil and gas projects in the onshore Cooper Basin (ATP 920, 924 and 783);

·         Conventional oil and gas projects in the onshore Perth Basin (EP437 and L7);

·         Conventional oil and gas projects in the offshore Perth Basin (WA 481-P); and

·         Conventional oil and gas projects in the Canning Basin (R1, L15 and EP 104));

The Company operates all its onshore projects in its portfolio and aims to create shareholder value through focusing on exploration and development of its core onshore project areas which are located in close proximity to existing refineries (Eromanga Refinery in Queensland and Kwinana Refinery in Perth Basin) in addition to a network of gas pipelines and other associated infrastructure in both areas. The company has recently restructured its business to focus on gas exploration opportunities in the Cooper Basin in Queensland to supply the east coast gas market and near-term oil exploration and development opportunities in the Perth Basin.

EXPERIENCED BOARD AND MANAGEMENT TEAM:

The Board and Management Team have extensive experience in Oil and Gas Onshore Exploration and Development, Corporate Advisory, Stockbroking, Capital Raising, Investment Banking, and Finance in both the Public and Private sector.

 

Issue Placement of fully paid (listed) ordinary shares
Offer Type and Size Placement of up to 100,000,000 fully paid ordinary shares via one (1) tranche s.708 placement to raise up to $1,000,000.
Fixed Offer Price  A$.01 per fully paid ordinary share (Offer price)
Use of Proceeds  Funds raised by the Placement will be used for:

·         Gas marketing of opportunities within ATP 924 that lie adjacent to the Carpentaria gas pipeline;

·         Drilling preparation of selected gas exploration prospects in ATP 924 to be drilled in later half of 2018;

·         Resource summary of Cooper Basin and Perth Basin projects;

·         Engineering studies of fast track gas development in ATP 924;

·         Exploration activities to support drilling in the Perth Basin; and

·         Working capital.

Disclosure  A prospectus will not be lodged in relation to this placement. The Placement is only available to ‘exempt’ investors or ‘sophisticated’ investors. Investors must satisfy the requirements of either s708 (8), 708(10) or 708(11) of the Corporations Act.
Website www.keypetroleum.com.au

 

Current Capital Structure Ordinary Shares:                                                   1,247,358,441

Unlisted Options:                                                      21,000,000

Shares to be Issued Pursuant to Successful completion of Placement Placement @ A$0.01:                                              100,000,000

Discount to 1.2c closing price:            20% & 10 day VWAP ($0.01229) discount 23%

Pro Forma Shares on issue:                                 1,347,358,441

Pro Forma fully diluted Market Cap @ A$0.01:          $13.47m

Pro Forma Enterprise Value @ A$0.01:                          $11m~

Firm Bids Due:                                        10am AEST Monday 16 April 2018

Acceptance forms to be returned:        10am AEST Tuesday 17 April 2018

Settlement:                                            Monday 23 April 2018

Expected Allotment:                              Tuesday 23 April 2018

Sanlam Private Wealth

Lead Manager Contact

Ben Faulkner:          (w) +61 3 8640 5506   (m) +61 402 298 030

ben.faulkner@privatewealth.sanlam.com.au

 

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