The ASX advised Orca that its plans to raise the funds from Tinkler’s Bentley Resources and Trepang Services, a company controlled by Darwin property developer John Robinson Snr and pearl magnate Nick Paspaley, raised concerns under ASX Listing Rule 12.31

The rule concerns the proportion of assets a company has in cash and its plans to invest that cash.

Given Orca has effectively sold its oil and gas assets in the Cooper Basin – its 20% interests in the Burruna [PPL 251] and Fury oil fields [PRL 117 and PEL 110] – to Senex Energy earlier this year, and only has the undrilled Seabiscuit prospect in Texas on its books, a prospect going nowhere in a hurry, the ASX wanted to know what Orca intends to do with the $25 million it expected to have.

The original plan was to issue 1.5 billion shares with two free attaching options at an exercise price of 1.33c apiece by June 30 2018 for every seven shares subscribed for.

Orca and its funders have not been able to agree on an alternative structure for the placement, so it has been terminated. The trio will still work together to potentially identify, evaluate and, if appropriate, acquire or invest in value adding assets.

Orca previously suggested it was seeking to take advantage of the depressed global oil and gas market.

Tinkler co-founded Aston Resources and played a significant role in the development of Whitehaven Coal, but is primarily known for his empire’s rise and fall with the last coal boom with assets in New South Wales.

He is looking to rebuild his empire after spiralling debts and a cooling resources sector hit his finances several years ago.

Tinkler had hoped to take on the role of Orca’s executive chairman while Trepang’s John Robinson Jnr would join the board as a director.