31st May 2016 13:03
LONDON (Alliance News) - MX Oil PLC said Tuesday it has raised GBP3.4 million in a share placing of 341.2 million shares at a price of 1 pence each, its equity by almost 50%.
This was at a premium to the company's closing price last Friday of 0.8p. Shares in MX Oil were up 23% at 0.981 pence Tuesday afternoon. MX has a market capitalisation of GBP7.8 million.
MX Oil said the placing is to ensure it has appropriate funding to retain its investment in block OML 113, offshore Nigeria, as well as funding its other activities and reducing its debt.
The company said production of oil has now commenced at the Aje Field on block OML 113, and with the oil price continuing to increase, retaining the investment is continuing to become more attractive.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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