28th Apr 2016 17:36
LONDON (Alliance News) - Eland Oil & Gas PLC on Friday said it will raise USD15 million through an accelerated bookbuild of shares at an expected price of 34 pence per share.
Panmure Gordon (UK) Ltd is acting as lead bookrunner, with Canaccord Genuity Ltd, Rand Merchant Bank and Pareto Securities acting as joint bookrunners.
The net proceeds of the placing will be used to fund the re-entry, completion and production of the Gbetiokun-1 well, to develop a supplementary export route for such production and for working capital purposes.
"The initial rate from the Gbetiokun-1 well is expected to be circa 7,800 barrels of oil per day gross. This project will once again almost double the company's already significant production profile. This fundraise will facilitate the development of this project in the second half of this year prior to the planned Ubima Early Production System," Chief Executive George Maxwell said.
Shares in Eland Oil & Gas closed down 0.1% at 33.71 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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