Highlights

  • Macallum secured firm commitments for about A$3 million through 21.46 million new shares at A$0.14, a 12.5 per cent discount.
  • Several parties have signed confidentiality agreements and are reviewing the data room for the EP 494 farm-out launched 14 October.
  • Independent October 2026 work estimated combined mean unrisked prospective gas resources of about 2,506 petajoules.
  • Tranche 2 and the lead managers' options need shareholder approval at the annual general meeting on 26 November 2026.

Pencilled in for the second half of 2027: a drilling campaign in the onshore North Perth Basin. Macallum New Energy Limited (ASX:MNE) announced on 28 October 2026 that it has received firm commitments to raise about A$3 million before costs through a placement of roughly 21.46 million new fully paid ordinary shares at A$0.14 each. The funds will support exploration and technical work on the oil and gas portfolio, including engineering and equipment procurement ahead of that possible campaign.

Placement terms

The issue price is a 12.5 per cent discount to the closing price on 23 October 2026 and a discount of between 20.6 and 23.1 per cent to the 30-day, 15-day and 5-day volume-weighted average prices. Sophisticated and professional investors, both new and existing and including institutions, gave the commitments, though none were named. The placement is not underwritten, and the new shares will rank equally with existing shares. GBA Capital Pty Ltd and Alpine Capital Pty Ltd are joint lead managers.

Two tranches

Tranche 1 is 20,598,502 shares to raise about A$2.88 million, issued under the company's existing ASX Listing Rule 7.1 capacity. Settlement is expected on 2 November 2026, with allotment on 3 November. Tranche 2 is 860,072 shares to raise about A$120,000, of which directors have subscribed A$102,000, or 728,572 shares. It requires shareholder approval at the annual general meeting on 26 November 2026.

The lead managers will also receive about 4.29 million unlisted options, one for every five placement shares, with a three-year term and an exercise price of A$0.21, a 50 per cent premium to the placement price. Their issue needs shareholder approval.

Use of funds

Proceeds go towards exploration and technical evaluation of the oil and gas portfolio, well engineering studies and long-lead equipment procurement, and seismic interpretation and geological studies of prospective resources. Funds also support farm-out discussions, commercialisation evaluation, general corporate costs and working capital.

Permits, farm-out and prospects

The company holds 100 per cent of permits EP 494 and EP 511 in the onshore North Perth Basin in Western Australia. A formal farm-out process for EP 494 began on 14 October 2026, with several parties having signed confidentiality agreements and now reviewing the data room. The aim is a partner to help fund up to two exploration wells targeted for the second half of 2027.

Interpretation of the Condor 2D seismic data and well planning continue. Well selection and a final investment decision on the first well are targeted for the first quarter of 2027, subject to funding, regulatory approvals and other considerations. Named prospects include Barberton Terrace Deep and Gadee. An independent update in October 2026 put combined mean unrisked prospective gas resources at about 2,506 petajoules. These relate to undiscovered accumulations, and the company said its 1U and 3U totals are simple arithmetic sums to be treated as indicative only.

Conditions and timetable

Tranche 2, including the director participation, and the broker options depend on shareholder approval. Drilling depends on completing a farm-out, securing funding, obtaining regulatory approvals and making final investment decisions. An addendum notice of meeting is listed for despatch on 6 November 2026, and Tranche 2 allotment and the option issue are expected in late November or early December 2026. All dates are indicative.