Blue Energy Secures $3.2 Million in Two-Tranche Placement

Highlights:

• Blue Energy Limited (ASX: BLU) has successfully raised $3.2 million through a two-tranche placement.
• Funds will support the advancement of the company’s gas exploration and development projects.
• The capital raising strengthens Blue Energy’s balance sheet and positions it for upcoming growth initiatives.

Strong Investor Backing

Blue Energy Limited (ASX: BLU) has confirmed that it has raised $3.2 million through a two-tranche placement to institutional and sophisticated investors. At the time of writing, the placement was priced at $0.005 per share, representing a significant discount to its recent trading levels. The raise received robust support from both new and existing shareholders, with Stralis Capital Partners acting as the sole lead manager. Tranche 1 will generate approximately $1.39 million under the company’s available capacity, while Tranche 2 is expected to contribute $1.81 million, subject to shareholder approval in mid-October 2025.

Use of Funds

The capital injection will primarily advance Blue Energy’s 100% owned Sapphire Block (ATP 814) in the North Bowen Basin. Funds will support drilling preparations, regulatory approvals, and progress on a proposed multi-user large-diameter pipeline to connect the region’s gas reserves with Australia’s east coast grid. Additional proceeds will cover corporate expenses and working capital. Chairman John Ellice-Flint has personally committed $200,000 in Tranche 2, subject to shareholder approval, signaling strong confidence in the company’s long-term strategy.

Share Purchase Plan for Retail Investors

Alongside the placement, Blue Energy announced plans for a Share Purchase Plan (SPP) targeting up to $250,000. Eligible shareholders in Australia and New Zealand will be able to apply for up to $30,000 in shares at $0.005 each, free of brokerage. The SPP remains subject to an ASX waiver but is designed to ensure retail investors can participate on equal terms.

Capital Structure Outlook

If both tranches and the SPP are fully subscribed, the company’s total shares on issue will increase to approximately 2.54 billion. The first tranche is expected to settle on 5 September 2025, with shares quoted from 8 September 2025.

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