AWE Completes Successful Placement Raising A $120 Million

Australian Worldwide Exploration has successfully completed a Placement to raise A$120 million.

An issue price of $2.00 per fully paid ordinary share was achieved under the book build process, representing a 7.8% discount to AWE’s closing price on September 8th 2005. Allotment of the Placement shares is conditional on shareholder approval at the general meeting to be held on October 19th 2005. A total of 60 million shares will be issued under the Placement, subject to shareholder approval.

Use of Funds

The Company is issuing the shares for the purpose of funding:

  • the development of an Indonesian LPG project;
  • additional capex for the expanded Cliff Head and Tui developments;
  • cost overruns on the BassGas project; and
  • a commitment to accelerated exploration activity & future growth projects, particularly in the Otway, Taranaki, Canterbury and Perth Basins.

Share Purchase Plan

Subject to shareholder approval being given for the Placement at the general meeting, AWE will offer eligible shareholders the opportunity to acquire additional shares in the Company via an SPP.

The SPP will provide shareholders who purchased shares on or before 8 September 2005 and are registered shareholders at 9 am on 14 September 2005 with a registered address in Australia and New Zealand, the opportunity to subscribe for up to $5,000 worth of ordinary shares in the Company. The shares issued under the SPP will be offered at the Placement price of $2.00 per share.

Details of the SPP will be released and sent to shareholders shortly. The SPP offer will not open for acceptance until February 2006. New shareholders buying shares in AWE after today’s release will not be able to participate in the SPP.


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