MIDDLETONS is advising Strike Energy as the oil and gas explorer raises $16.8 million through a placement and rights issue to fund exploration of its US projects.
Minter Ellison is acting for venture capital investor and equity capital markets advisory house MH Carnegie & Co.
Strike Energy will raise $7.4 million through a placement at 15 cents a share with M H Carnegie & Co taking 50 per cent of the shares on offer and lead manager Blackswan Equities placing the balance of shares with clients.
Existing shareholders will be entitled to subscribe for one new share for every six they hold, also at 15 cents a share, to raise a further $9.4 million. Blackswan and M H Carnegie & Co will fully underwrite the non-renounceable rights issue.
Middletons partner Adam Levine said the success to date has largely represented the potential for Strike Energy to continue its growth trajectory and its innovation in extraction techniques.
"Strike Energy is at the forefront of production technologies that will greatly assist its oil and gas operations and the market has clearly shown confidence in the company."
Minter Ellison partner Daniel Scotti with consultant Joel Farina lead the firm's legal team.
Scotti said the firm is "delighted" to have assisted MHC in its first equity capital market underwriting transaction. "Particularly as this transaction was conducted in an industry not typically the domain of Australian venture capital investors," he said.
"Venture capital funding and underwriting by MHC of a publicly listed oil and gas exploration and production company highlights the flexibility and continuing evolution of Australia's equity capital markets."