Key Highlights

  • The placement of about 21.46 million shares at A$0.14 is a 12.5 per cent discount to the 23 October 2026 closing price and is not underwritten.
  • Tranche 1 raises about A$2.88 million; Tranche 2 raises about A$120,000, including A$102,000 from directors, and needs shareholder approval.
  • A formal farm-out process for EP 494 began on 14 October 2026, with a possible drilling campaign in the second half of 2027 subject to funding and approvals.

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 company said the funds will support exploration and technical work on its oil and gas portfolio, including engineering and equipment procurement ahead of a possible drilling campaign in the second half of 2027.

Placement terms

The issue price represents 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. Commitments came from sophisticated and professional investors, both new and existing, including institutions, although 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 acted as joint lead managers.

The placement is split into two tranches. Tranche 1 comprises 20,598,502 shares to raise about A$2.88 million and will be issued using the company's existing ASX Listing Rule 7.1 capacity. Settlement is expected on 2 November 2026, with allotment on 3 November 2026. Tranche 2 comprises 860,072 shares to raise about A$120,000, of which directors have subscribed for A$102,000, or 728,572 shares. Tranche 2 requires shareholder approval, which the company will seek at its annual general meeting on 26 November 2026.

The joint lead managers will also receive about 4.29 million unlisted options, equal to one option for every five placement shares. The options have a three-year term and an exercise price of A$0.21, a 50 per cent premium to the placement price, and their issue also needs shareholder approval. Fees comprise a 2 per cent management fee on gross proceeds and a 4 per cent selling fee on funds from investors introduced by the managers.

Use of funds

Macallum said proceeds will go towards exploration and technical evaluation of its oil and gas portfolio, well engineering studies and long-lead equipment procurement for a possible drilling campaign in the second half of 2027, and seismic interpretation and geological studies of prospective resources. Funds will 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. It said 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 to find 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 are continuing. Macallum said 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 are prospective resources, meaning they relate to undiscovered accumulations, and the company noted that its 1U and 3U totals are simple arithmetic sums that should be treated as indicative only.

Conditions and timetable

Several elements remain conditional. 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. The company listed an addendum notice of meeting for despatch on 6 November 2026, and said Tranche 2 allotment and the option issue are expected in late November or early December 2026. All dates are indicative and subject to change.