Power distributor Australian Power $ Gas said on Thursday that it has signed a three-year electricity supply deal with a major generator for its entry to the Queensland energy market as it increased forecast for customer growth and announced the availability of convertible note facility to be used for raising funds.

The energy retailer said that it would extend by up to 18 months its $50 million receivable financing facility with Fortress Investments and generate up to $18.75 million by issuing convertible notes, which would require shareholder approval, to fund the company's expansion projects.

The Sydney-based company is optimistic that the fresh developments would allow the company "to increase its growth of customers from the current forecast of 300,000 customer accounts to 450,000 by June 2014."

At present, Australian Power & Gas holds up to 140,000 active customer accounts in Victoria alone and the deregulated Queensland market should give the company a new theatre for further expansion.

Company chief executive James Myatt is upbeat that "the market conditions in Queensland and New South Wales have developed and Australian Power & Gas can now successfully challenge the existing participants and enter these markets with a competitive offering."

Australian Power & Gas, founded in 2006 and currently with energy retail licences in Victoria, NSW, Australian Capital Territory, South Australia and Queensland, said that its market projections were being adjusted to conform to its new accelerated growth plan and should be published right after the company's budget review process.

The company's expected net profit after tax for 2009/10 should come in between $2 million and $2.4 million, after coming from a net loss of $9.9 million in 2008/09.

As of 1118 AEST, Australian Power & Gas shares were trading at 40.5 cents, gathering six cents more or 17.39 percent.