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Tri-Star shows confidence in Omega by upping stake through oversubscribed placement at a premium

Article originally published by The Courier Mail.

It is not every day that a company gets to raise capital at a premium but that’s exactly what Omega Oil & Gas is enjoying with one of its largest shareholders moving to increase its stake.

Privately-owned explorer and investor Tri-Star Group, which is owned by the same Butler family that drilled the first commercial coal seam gas well in Queensland, increased its stake in the company up from 15 per cent to 19.9 per cent to become its second largest shareholder, after the Flannery family’s Ilwella Pty Ltd.

Tri-Star Australia country manager Andrew Hackwood had previously told Stockhead that the company was “focused on realising long term value and – we think – plays where there’s an appropriate balance of risk and reward, which is what attracted us to Omega, the 3 TCF of potential resource”.

Choosing to increase its stake through Omega Oil & Gas’ (ASX:OMA) institutional placement priced at 18c – a 5.9 per cent premium to the last traded price of 17c – is a clear sign that Tri-Star is still very much of the view that the company is an attractive buy.

And it is not the only company that thinks so.