Woodside raising $l2O million

Press, 28 February 1980, Page 22

Woodside raising $l2O million

NZPA Melbourne i Woodside Petroleum, Ltd, ■plans to raise SI2OM from a ! one-for-four rights issue of ■shares at 150 c a share. The funds from the issue will be used to finance expenditure on the Northwest Shelf natural gas project until the conclusion of longterm borrowing arrangements, and also to provide a broader capital base for the , company. | The major shareholders I in Woodside — Northwest ! Shelf Development Pty, Ltd, ! Hematite Petroleum Pty, Ltd, and the Shell Company of Australia — have indicated! that they will take up their I full entitlements totalling' ' about 34.2 M shares. The balance of about 45.8 M shares, has been underwritten by Melbourne ■ brokers, Potter Partners. ! In their statement to stock exchanges, the directors of Woodside said that : although neither the com- , pany nor the joint-venturers i have yet made a final com- ] mitment to the development of the natural gas project, I in which Woodside ha»s a 50 j per cent interest, “it con- <

, tinues to be the aim of the I joint venturers to have gas available for the first regular supply to Western Australia in September, 1984, and for the first liquefied natural gas cargo to be- loaded for export in April 1986.” However, before a binding commitment can be made to the project, it is necessary to draw together the formal and complex matters relating particularly to sales contracts, and financing, they said, noting that many of these are interdependent. “If the target dates are to be met, it is necessary to maintain momentum towards commencement of the construction phase of the project.

“This entails proceeding with critical activities, which have long lead times, which involve the joint - venturers in expenditure on material and equipment not-with-standing that no formal commitment has yet been made to the project, or any phase thereof. “The amount required to finance such expenditure prior to the first drawdowns of long term borrowings for

the project will depend, among other things, upon when the negotiations with the lenders are concluded.

“Although there can be no certainty that these negotiations will be successfully completed, the present expectation of the company is that they will be concluded in time to permit the first drawdowns by September -980,” Woodside directors said. They estimate the amount required to finance the company’s share of project expenditures until September this year at SSOM. A further S3SM will be required to fund expenditure for the remainder of the year. The company’s total funding requirement for its 50 per cent interest before the project becomes self financing, is expected to be between S2OOOM and $2500M. depending on final financing, and -shipping arrangements. Funds amounting to $32.6M were on hand at January 31, and this will be more than sufficient to finance the continuing exploration effort into 1981, the directors said.