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LONDON (Alliance News) - Angus Energy PLC said on Tuesday it has raised GBP3.0 million through a placing, which will go towards working capital, and supporting works at the company's Brockham, Balcombe and Lidsey assets onshore the UK.
Early Tuesday, Angus proposed the placing to raise between GBP3 million to GBP5 million, and also proposed an open offer to raise GBP500,000.
Within the placing, 70.8 million shares were issued at a price of 4.25 pence per share, conducted by broker WH Ireland. The placing price was at a 17% discount to Angus Energy's closing price on Tuesday of at 5.15p.
Shares in the oil & gas company were 16% lower at 4.30 pence on Tuesday.
In addition to work on the existing assets, Angus Energy is conducting due diligence for the potential acquisition of a 51% operating interest in an existing UK onshore gas field, which has been on and off production for 20 years with eight surface wells already drilled.
The acquisition is currently under discussions, the cost of the acquisition is a token GBP1.00; however additional work, as well as a cash contribution towards abandonment costs, is expected to bring costs up to GBP1.7 million.
"We continue to develop and improve our asset base in the Weald Basin and are very excited to bring this new opportunity to investors. Should the proposed acquisition proceed to a successful conclusion, it would offer clear diversification benefits and the possibility of cashflow generating production without the near term need for further equity capital," said Managing Director George Lucan.
Following the placing, Angus Energy now has 538.1 million shares issued overall.