25th Feb 2014 12:09
LONDON (Alliance News) - Enegi Oil PLC Tuesday said it has raised GBP2.0 million after expenses through a share placing with new investors that will provide it with funding it needs for its Fyne Oil Field Farm-In as a result of new developments there.
The placing was conducted solely with YA Global Master SPV Ltd, which subscribed for about 24.9 million shares. Enegi Oil said it has entered an equity swap agreement for GBP500,000 of that amount split evenly over a 12 month period. The agreement means Enegi Oil stands to receive more or less than the GBP41,666 due in any given month based on movements against a benchmark price of 8.88 pence.
YA Global Master SPV Ltd is a fund managed by Yorkiville Advisors, LLC, which was founded in January 2001 and provides debt and equity financing to publicly listed companies.
In a statement, Enegi said it and its partner, Antrim Resource (N.I) Ltd, expect to submit the completed environmental statement for the Fyne Field to the Department of Energy and Climate Change by the end of March.
From that point the companies will await clearance for the statement, after which it expects to submit the final form of the field development plan for Fyne. Enegi said it expects that submission will occur in late summer 2014.
At the time of submission, any technical issues must be resolved, the environmental statement must be approved, evidence of suitable financing must be provided and Antrim must be approved as a Production Operator.
Enegi said it expects first production before November 25 2016, and said the timeline has been agreed with the Department of Energy and Climate Change.
The proceeds of the placing will also be used to facilitate the initial work commitments under the Dunmore and Helvick Field Farm-In Agreements announced in November 2013, as well as to fund Enegi's application for new licences under the 28th new round of offshore petroleum licensing by the Department of Energy and Climate Change.
Enegi Oil shares were Tuesday quoted at 8.07 pence, down 0.55, or 6.4%.
By Samuel Agini; [email protected]; @samuelagini
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