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Orca soars on Tinkler injection

Nathan Tinkler. Picture: Getty Images.

UPDATE 2.50pm: Shares in West Perth-based oil and gas play Orca Energy more than tripled on news that controversial businessman Nathan Tinkler will invest in the company and take the helm as executive chairman.

The company announced this morning that the Tinkler-controlled Bentley Resources and Trepang Services, controlled by John Robinson Snr and Nick Paspaley, would invest $20 million in the company through a placement.

Mr Robinson would also join Orca's board as a director.

Orca said the $20 million cash injection, along with the $5 million the company expects to receive from the sale of its Cooper Basin assets, would provide the company with the funding to acquire or invest in assets in the energy sector.

Orca managing director Greg Bandy said the company was delighted to have attracted the financial support of both Mr Tinkler and Mr Robinson, as well as their corporate experience.

"We believe that well capitalised companies with a long-term investment strategy are well placed to take advantage of a depressed energy sector," he said.

"Orca is now in a position to do just that."

Orca announced in March that it would sell its Cooper Basin assets to Senex Energy, delivering it more than $5 million in cash.

Along with 1.5 billion new Orca shares, Bentley Resources and Trepang Services will receive two free attaching options for every seven shares subscribed for.

Mr Tinkler will receive 387 million performance rights, which will convert in three tranches of 129 million each, upon Orca achieving a 20 day volume-weighted-average-price of 2.5 cents, five cents and 10 cents.

Orca is the second West Perth-based junior to be linked to Mr Tinkler after he joined Fraser Range-focused explorer Rumble Resources as an adviser last month. He also accepted performance-based share options in that company in exchange for his services.

Mr Tinkler made and lost about $1 billion punting on coal mining assets in Queensland and New South Wales between 2006 and 2013.

Orca shares were up 2.4 cents, or 218.18 per cent, to 3.5 cents at the close.