Carbon Energy Limited (ASX:CNX)
Brisbane, June 18, 2009 AEST (ABN Newswire) - Today the Australian Financial Review (AFR) reported that Incitec Pivot Limited's (ASX:IPL) stake in Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) has been diluted following Carbon Energy's recently announced A$32 million capital raising. This is not completely accurate.
As announced on 5 June 2009, IPL participated for approximately 10% of the placement of shares and will maintain their interest in Carbon Energy at approximately the same level as their pre-placement interest.
The placement of the shares has been conducted in two tranches: 50 million shares have been placed in the 1st tranche which occurred on 15 June, with the balance of approximately 24.4 million shares being placed subject to shareholder approval at General Meeting of shareholders to be held on 20 July 2009.
Incitec Pivot Limited participated for approximately 10% of the placement with all of its allocation to be issued in the second tranche. Therefore the dilution reported in the AFR is temporary only, with IPL's interest to increase following the completion of the second tranche subject to shareholder approval.
Separately, the CSIRO's holding in the Company has reduced due to dilution (a result of the first tranche Placement) as well as the sale of 4 million CNX Shares. The CSIRO have provided a statement to Carbon Energy as follows: "CSIRO have no intention to sell any more of its stake in CNX this year and remains a long term supporter of the Company".
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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