23rd Jul 2014 12:02
LONDON (Alliance News) - Sirius Petroleum PLC Wednesday said it has conditionally raised gross proceeds of USD20 million by way of a placing and subscription to help develop its OML 95 licence.
The Nigeria-focused oil and gas production company said the cash is being raised through a conditional placing of 63.5 million shares and a subscription of up to 326.3 million shares.
The company said the cash will be put towards its initial well at the OML 95 licence, in which the company has a 40% interest, as part of a proposed three well programme targeting daily field production of roughly 6,000 barrels of oil.
A recent Schlumberger study found that the total cost of the initial well will be roughly USD25.1 million and Sirius said its board is seeking further funding to meet the shortfall.
The fundraising announced today is conditional upon the company raising further funds on or before September among other requirements.
"We have been delighted with the response to the equity raise from the UK market.... We can now look forward with confidence to deliver on our strategy to develop our first off-shore marginal field and the first step in building a range of development and producing oil and gas assets in Nigeria," Chief Executive Bobo Kuti said in a statement.
Sirius Petroleum shares were down 6.2% to 3.03 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Sirius Pet