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LONDON (Alliance News) - Block Energy PLC on Thursday said it has successfully raised around GBP12 million to fund work at its Georgian operations.
Block has issued 109.1 million new shares at 11 pence each. Shares were down 5.1% at 12.39p just after midday in London.
The exploration and production company announced its intention to raise the money on Wednesday and said the funds would help accelerate work at the West Rustavi onshore oil and gas field.
Mirabaud Securities Ltd was sole bookrunner for the placing, which had a discount of 16% to the closing market price on Wednesday.
Once all placing shares are admitted, Block will have 385.2 million shares in issue, with the placing shares making up 28% of this.
Using the proceeds, the company intends to drill as many as four horizontal sidetrack wells and expand production facilities to raise capacity at West Rustavi to between 4,000 and 5,000 barrels per day.
Block's Chief Executive Paul Haywood said: "The funds raised also give us the freedom to explore fresh opportunities: we are a young, ambitious company keen to apply the low cost, innovative drilling technologies we have deployed in Georgia to new ventures in the region and beyond.
"Today marks a major step forward for Block as we move towards our objective of becoming one of AIM's newest mid-tier oil and gas producers."