28th Apr 2015 12:41
LONDON (Alliance News) - Europe and Mediterranean-focused oil and gas company Sound Oil PLC saw its shares gain ground in early trade on Tuesday after it said its loss in 2014 narrowed on the back of better-than-expected production and a drop-off in exploration costs.
The company also said it has raised over GBP12 million from a placing and said it will offer shareholders the chance to participate in an open offer.
Sound Oil said its pretax loss in 2014 was GBP4.9 million, compared to a GBP6.9 million loss a year earlier. Revenue rose to GBP983,000 from GBP482,000. The loss was cut primarily by a fall in exploration costs to GBP74,000 from GBP4 million.
The company said it had its first full-year production from the Rapagnano site in Italy, with volumes ahead of its expectations at 3.2 million cubic feet of gas.
Sound also made progress on the Badile permit in the year and remains in talks on the farm-out of the project, and said it has now spud its second well at the Nervesa project, with test results expected in June.
In a separate statement Tuesday, Sound said it has raised GBP12 million after issuing under 63.2 million new shares at a price of 19.0 pence per share. Each share came with a detachable warrant to subscribe to a new share in the company at an exercise price of 24.0 pence per share. Sound said if all of the warrants are exercised, the average issue price for the entire placing would be 21.5 pence per share.
All of the shares issued were placed with Metano Capital SA, a wholly owned subsidiary of Continental Investment Partners SA. Metano will initially be issued with 48.0 million shares in the first tranche to take its total shareholding to 116.2 million shares, or a 24.87% stake.
Shares in Sound Oil were down 9% to 21.51 pence on Tuesday afternoon.
"The net proceeds of the placing will provide the company with additional funding to execute various strategic corporate and asset acquisitions, which are currently under negotiation," it said in a statement.
In addition, existing shareholders will be offered the chance to participate in an open offer of new shares and warrants up to a maximum of EUR5.0 million, at the same 19.0 pence per share price.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Sound Energy