20th Jun 2014 07:23
LONDON (Alliance News) - Rose Petroleum PLC shares lid Friday after it said it intends to raise GBP6.5 million through an oversubscribed placing and subscription, money it will use to develop its Mancos and Paradox assets in Eastern Utah, pursue strategic acquisitions and for working capital.
In a statement, it said it would raise the money through an oversubscribed conditional placing by agents Allenby Capital Ltd and Pareto Securities Ltd to institutional investors, and a subscription of 433.3 million new shares at 1.5 pence each.
The fund raising is conditional on shareholder approval at the company's annual general meeting on June 27.
"This initial financing will allow us to commence the development of our Mancos and Paradox assets and which we anticipate will lead to initial production from the project during the first half of next year. We are also pleased that a number of oil & gas companies that have expressed an interest in partnering with Rose on a project level," Chief Executive Matthew Idiens said.
Rose Petroleum shares were down 12.5% at 1.61 pence early Friday as the placing price set a new benchmark price.
By Steve McGrath; [email protected]; @SteveMcGrath1
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