8th Nov 2013 09:03
LONDON (Alliance News) - Caracal Energy Inc. Friday said it has started to produce oil in Chad and is moving forward with its exploration programme.
The oil and gas explorer in Chad said that on Wednesday, oil was flowing into its export pipeline at a rate of roughly 5,100 barrels per day after it commenced production at the Badila Field at the end of the third quarter.
Caracal said that future cash flow from production will be utilized to fund the development of the company's properties and a high impact exploration program in 2014.
The company is yet to post any revenues, but said it exited the third quarter ending September 30 with working capital of USD191.8 million, including cash and cash equivalents of USD45.3 million.
Caracal also said it drilled and tested the Mangara-5 development well with an initial maximum flow rate of 1,917 barrels per day and that the Bitanda exploration well is to start production tests in the fourth quarter 2013.
The company said on Thursday, it intends to raise up to USD200 million through a placing and open offer of new shares, and will use the funds raised to accelerate its exploration programme.
Caracal Energy shares were down 3.5% to 463.00 pence in early trading Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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