Key Petroleum Completes First Tranche of Placement, Seeks New Investors for Remaining Shares

Key Petroleum Limited ( (AU:KEY) ) has shared an announcement.

Key Petroleum has completed a 3% tranche of its previously announced share placement, issuing 1,015,286 fully paid ordinary shares at AU$0.058 each to raise AU$58,886.59 before costs, following a brief settlement delay linked to Chinese Lunar New Year banking timelines. The planned 13% tranche with the original subscriber has been cancelled for reasons unrelated to the company, and Key Petroleum is now seeking alternative sophisticated investors to place the remaining 4,399,572 shares on identical terms within about three weeks, with proceeds earmarked for asset acquisitions, existing asset development and maintenance, and working capital needs.

The company confirmed that the new shares were issued without a prospectus under the Corporations Act’s exemption provisions, noting it remains compliant with its continuous disclosure and financial reporting obligations. Management reiterated there is no change to the previously stated use of funds, signalling that the capital raising strategy and operational priorities remain intact despite the withdrawal of the initial subscriber for the larger tranche.

The most recent analyst rating on (AU:KEY) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Key Petroleum Limited stock, see the AU:KEY Stock Forecast page.

More about Key Petroleum Limited

Key Petroleum Limited is an Australian-listed energy company focused on petroleum exploration and production. The company targets assets with development upside and invests in maintaining and developing its existing portfolio, positioning itself within the upstream oil and gas sector.

Average Trading Volume: 12,650

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$1.73M

Learn more about KEY stock on TipRanks’ Stock Analysis page.