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Alpha Energy's S$21.1m rights issue oversubscribed

ALPHA Energy's S$21.1 million rights issue has been oversubscribed, the Catalist-listed owner and operator of oil assets said on Wednesday.

Valid acceptances and excess applications were received for a total of 134.22 per cent of the available 1.5 billion rights shares, as at the close of the rights issue on Sept 5.

The rights issue constituted 200 per cent of its existing share capital and 66.7 per cent of its enlarged share capital. The issue price was S$0.014 per rights share.

Out of the net proceeds of S$12.1 million, S$8.4 million will be used to pay off a term loan from Alaska Tembusu that was used for the Mustang oilfield project's first oil funding needs. Of the net proceeds, 80 to 90 per cent will be used to continue its Mustang project development works, and the remaining amount will be used for general working capital.

The group expects the rights shares to be issued on Sept 12 and listed and quoted on the Catalist from 9am on Sept 13.

The counter closed at 1.7 Singapore cents on Wednesday, up 6.25 per cent or 0.1 Singapore cent.