Triangle to raise funds via rights issue, placement

By Romel S. Gurky

ASX-listed Triangle Energy (Global) Ltd announced Wednesday plans to raise more than US$1.81 million via rights issue and private place to help finance working capital as the company pursues for new PSC for the Pase block in Aceh Province.

Triangle said in a statement it was inviting investors to participate in a pro-rata non-renounceable rights issue to raise up to $817,237. In addition, the company is also proposing, separately, to raise $1,000,000 in capital from sophisticated and professional investors pursuant to a placement of shares at $0.001 per share.

Details of the two capital raisings are:
1. Non-renounceable rights issue to eligible shareholders-offer of one new ordinary fully paid share for every two shares held at the record date at an issue price of $0.001 each to raise up to $817,237
2. Share placement to sophisticated and professional Investors-the issue of 1 billion shares at $0.001 each to raise $1 million. The offer is not conditional on the placement and vice versa.

The funds raised will be used for working capital for the next 12 month period while the company pursues the award of a new long term Production Sharing Contract (PSC) to operate the Pase block in Aceh Province.

Triangle currently acts as temporary operator of the Pase block and due to the ?care and maintenance? nature of the temporary operatorship Triangle has incurred a decline in revenue from the Pase block. Following a review of the company?s operations and corporate overheads the company has recently reduced expenditure and will continue to reduce corporate overheads in an initiative to conserve the company?s cash reserves while it pursues the award of a new PSC, the statement explained.

Triangle has operated and produced gas from the Pase block since 2009. The company in July signed an agreement with the Aceh provincial government-owned company PDPA to set up a joint venture called Aceh Pase Global Energy Pte Ltd (APGE), which aims to become the operator of the Pase block under a planned new 3-year PSC. APGE is 75 percent owned by Triangle.

Elsewhere, the statement said that upon the completion of the capital raisings, the Board of Directors of Triangle will change with the retirement of John Towner and Steve Hamer and the appointment of Robert Towner and Darren Bromley as Directors.

Editing by Reiner Simanjuntak