10th Jun 2015 15:40
LONDON (Alliance News) - UK Oil and Gas Investments PLC shares fell on Wednesday after it confirmed media speculation that it will raise funds via a placing to advance its assets, including the Horse Hill license area.
UK Oil and Gas shares were down 3% to 2.42 pence per share late Wednesday.
The company, which is involved in the Horse Hill oil discovery near Gatwick Airport in the UK Weald basin, said it is in talks with potential investors about raising a minimum of GBP4.5 million at a target price of 2.25 pence. It will be conducted by a accelerated book-build process by WH Ireland Ltd.
UK Oil noted the placing price represents a 10% discount to the mid-market price at the close on Tuesday.
UK Oil and Gas's current market capitalisation is GBP42.15 million, so the new issuance would represent about 10% of its current share capital.
The company said the proceeds will be used to further its existing assets, in particular the Horse Hill license area and wider Weald basin. The proceeds will also be used for potential investment in the oil and gas sector and for general corporate purposes.
By Joshua Warner; [email protected]; @JoshAlliance
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