A MAJOR capital raising venture has been announced by Queensland Gas Company (QGC) Ltd in an effort to satisfy the increasing demand for natural gas on the eastern seaboard.
A rights issue prospectus was lodged with the Australian Securities and Investments Commission for QGC by firm McCullough Robertson last week. The largest specialist coal seam gas company on the Australian Stock Exchange, QGC aims to raise $59.7 million in order to further exploit its Surat Basin tenements and to develop the Condamine Power Station.
Managing director Richard Cottee, said QGC’s Undulla Nose geological structural formation could become a world class gas resource in the next year.
The chance for major industrial, electricity generation and domestic expansion opportunities should allow QGC to secure a competitive position in the market.
“By building the Condamine Power Station on QGC’s gas field, we will enjoy significant savings in transportation and processing costs, meaning that operating costs will be in the lowest cost quartile for gas-fired power stations on the national grid,” Cottee said.
The McCullough team was led by partner Brett Heading and Reece Walker. Being involved in the venture allowed QGC to raise “capital which will enable it to very quickly improve its position in the market place, and [McCullough] expect it will become a very serious energy company as a consequence”, said Heading.
“It’s got all the ammunition it needs to go forward and complete its strategy. It’s very significant for the ongoing growth of the company.”