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Byron Energy (ASX:BYE)

$30.9m recently raised to fund the shift from development to production.

Henslow was engaged by Byron to advise on its $16.0m equity capital raising with the proceeds used to fund the final development phase of SM58 taking the SM58 G platform into production. Additionally, the company is also undertaking a $14.9m Share Purchase Plan (SPP), advised by Henslow.

At the forefront of technology, paving the path to suitable oil and gas prospects.

Byron Energy is an independent oil and natural gas exploration, development and production business focused solely on the shallow waters offshore Louisiana, in the Gulf of Mexico. Since its 19 million barrels of oil (mmbo) discovery (gross reserves) on its SM71 lease in 2017 (Byron 50% gross), they have been a producer with revenue approaching US$40m in the 2019 financial year. The company prides itself on its advanced knowledge within the field of seismic interpretation.

The Highlights

  • $30.9m

    raised via Placement and SPP

  • $55m

    Revenue approaching in the 2019 financial year

  • Over $185.0m

    raised since 2013

Building towards successful exploration and production

Byron recently made a more significant oil discovery with 17 mmbo of reserves and 13 mmbo of prospective resources (gross) on its wholly-owned SM58 lease, the final stage of development of which will be funded by this financing. We have worked alongside Byron Energy for the past 7 years, raising approximately A$120 million in equity capital and look forward to supporting the company through its focused growth strategy.

Timeline

July 2013

IPO $61.0m

June 2016

Placement $21.0m

September 2017

Placement $27.0m

December 2019

Debt & Rights Issue $46.8m

June 2020

Placement & SPP $29.8m

A $16 million in placement funds, US$3.5 million in additional loans from Crimson Midstream and the SPP funds will put us in a stronger financial position and allow us to maintain momentum at SM58 notwithstanding the oil price shock and the COVID – 19 restrictions. The successful development of SM58, where we hope to commence production in September 2020, will enable us to continue executing our focused growth strategy, designed to build a successful exploration and production company operating on the shelf in the Gulf of Mexico.

Maynard Smith, CEO of Byron Energy