21st Jul 2014 16:51
LONDON (Alliance News) - Chariot Oil & Gas Ltd Monday said it plans to raise up to USD15 million by way of a share placing to fund the completion of its 3D seismic work commitment in Brazil and to pursue an additional new venture opportunity to sustain the growth potential of its portfolio.
Chariot said it will split the funds equally to pursue each venture.
The company said the fundraising will also result in greater flexibility in partnering negotiations and will provide further optionality in executing its forward work programmes.
"Whilst our cash balance remains strong, the proposed fundraising will improve our liquidity, allowing us to continue to accelerate our planned work programmes, pursue a new venture opportunity and create value over the longer term," Chief Executive Larry Bottomley in a statement.
"As a result of our work to date, the company has built up a large scale, high impact portfolio with a solid platform for growth and exposure to a pipeline of drilling activity over the coming years."
The final offering price and total number of placing shares to be sold pursuant to the placing will be determined in the context of the market with final terms to be determined following the completion of the book-building process, Chariot Oil & Gas said.
GMP Securities Europe LLP and FinnCap Ltd will act as joint bookrunners.
Chariot Oil & Gas shares closed down 1.4% at 17.50 pence Monday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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