10th Jun 2015 16:32
LONDON (Alliance News) - UK Oil and Gas Investments PLC said it has raised GBP6.0 million after conducting a placing of over 266.7 million new shares in the company.
The company's shares fell on Wednesday after it confirmed media speculation that it would raise funds via a placing to advance its assets, including the Horse Hill license area.
UK Oil and Gas shares closed down 3% to 2.42 pence per share Wednesday.
The company, which is involved in the Horse Hill oil discovery near Gatwick Airport in the UK Weald basin, said earlier Wednesday it was in talks with potential investors about raising a minimum of GBP4.5 million at a target price of 2.25 pence via an accelerated book-build process by WH Ireland Ltd.
UK Oil raised more than the minimum target, at GBP6.0 million after placing 266.7 million new shares in the company. The results of the placing were revealed after the market close Wednesday.
UK Oil noted the placing price represents a 10% discount to the mid-market price at the close on Tuesday. The company's current market capitalisation is GBP42.15 million, so the new issuance represents about 10% of its current share capital.
The company said the proceeds will be used to further its existing assets, in particular the Horse Hill license area and wider Weald basin. The proceeds will also be used for potential investment in the oil and gas sector and for general corporate purposes.
By Joshua Warner; [email protected]; @JoshAlliance
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