Carbon Energy to Raise Funds for Queensland's Blue Gum Gas Project Development

Carbon Energy on Tuesday announced plans to raise up to A$5 million for development of Blue Gum gas project in Queensland, Australia.

The said amount would be raised through a share purchase plan for existing eligible shareholders which is to be underwritten to A$2.5 million.

“With the company’s recent announcement that it holds the fifth largest 2P gas Reserve in Queensland, the lodgement of the Rehabilitation Plan and interest shown by potential off-take parties, these  funds will provide some of the initial capital required to advance the commercialisation of the Blue Gum gas project,” Carbon Energy’s Managing Director Morné Engelbrecht commented. “The Blue Gum Gas Project has the potential to generate significant financial returns for the company as well as generate numerous jobs and revenue for the state of Queensland and we look forward to continuing to work with the State Government to make this significant project a reality.”

Blue Gum gas project, located in Surat Basin, is intended to deliver 25PJ per annum of pipeline quality natural gas. The company anticipates that first gas could be supplied to local industry by 2017.