New Hope finds an investment

NEW Hope has splashed out some of its wad of cash, acquiring a 13% stake in Australia-listed Planet Gas.
New Hope finds an investment New Hope finds an investment New Hope finds an investment New Hope finds an investment New Hope finds an investment

CBM operations by Planet Gas in the United States.

Blair Price

The coal producer scooped up 47.47 million ordinary shares of Planet for $A4.51 million at 9.5c per share.

If approved by Planet shareholders, New Hope can increase its stake to 19.9% through a second tranche issue at the same price.

Planet is a coal bed methane explorer in Wyoming’s Powder River Basin and also wholly owns Australian geothermal explorer Gradient Energy.

New Hope managing director Robert Neale will now move onto the Planet board.

The coal producer has an enviable cash position after selling its undeveloped New Saraji project to BMA before the downturn for $A2.45 billion ($US2.02 billion) in July 2008.

New Hope has also shown some investment savvy in the past, having bought into 112 million Arrow Energy shares when they were at 58c each (they closed at $4.43 yesterday).

Shares in New Hope closed down 6c to $5.19, with CSM explorers failing to impress investors.

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