13th Nov 2013 09:23
LONDON (Alliance News) - BowLeven PLC Wednesday saw its shares fall sharply after saying it will look to raise about GBP13.3 million through a placing an open offer to fund development of its Etinde project.
The oil and gas company successfully placed 3.9 million shares in a placing first thing Wednesday at 45 pence a share, and is offering 25.6 million shares in an open offer at the same price.
The company's shares were down 15.6% at 44.5 pence on AIM early Wednesday as the placing price set a new benchmark for the diluted stock,
The Etinde project of a shallow water permit just off the coast of Cameroon. BowLeven is working with Petrofac to develop the area. It expects to produce first gas from the permit in the second-half of 2016, and has recently presented an expanded exploitation application to Cameroon authorities. It will use the new funds to progress towards a key step known as the Final Investment Decision.
Separately, BowLeven reported a narrowed net loss for its last financial year. The company isn't yet making any revenue, so its losses are down to administrative expenses and other costs. Its loss for the year to end-June was USD11.1 million, down from USD13.1 million a year earlier, even though administrative expenses rose. In the previous year, it booked USD3.6 million in unsuccessful exploration costs and a USD3.2 million loss on the disposal of a subsidiary.
The company is also developing other assets onshore Cameroon and in Kenya.
By Steve McGrath; [email protected]; @SteveMcGrath1
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