Beach Energy shares surge after raising to fund Lattice buy

Beach Energy shares soared after it raised $201m from institutions to fund the acquisition of Lattice Energy.

Beach is acquiring Origin’s conventional oil and gas arm, Lattice Energy.

Shares in Beach Energy have soared after the mid-cap oil and gas explorer raised $201 million from the institutional portion of its rights share issue to fund the acquisition of Lattice Energy.

Beach shares were up almost 15 per cent at noon (AEDT) after Beach said 98 per cent of the shares on offer to institutions were taken up — including by largest shareholder Seven Group Holdings.

The new shares were sold at 75 cents each.

Beach shares on the ASX came out of a two-day trading halt today and were up 11.8 cents, or 14.6 per cent, at 93 cents by midday.

The company hopes to raise another $100 million when the retail portion of the rights offer opens on Thursday.

Beach will use the $301 million plus syndicated debt facilities to fund its $1.585 billion acquisition of Origin Energy’s conventional oil and gas exploration business.

“The acquisition of Lattice is transformational for Beach as it delivers a step- change in production, operating capabilities and geographic exposure,” chief executive Matt Kay said.

AAP