(Alliance News) - Bahamas Petroleum Company PLC on Tuesday said it secured USD11.4 million to fund drilling in 2020, helped by strong demand from a share placing.
The oil and gas exploration firm raised USD7.1 million through the placing of 275.6 million shares, priced at 2.00 pence each. The company initially planned to place 172.1 million shares.
The stock was trading 7.5% lower at 1.99 pence each in London on Tuesday afternoon.
The company had previously raised USD4.3 million through an open offer.
Through a conditional convertible loan note, which the company unveiled plans for in October, Bahamas expects raise an additional USD13 million.
The convertible notes have a three-year term, with a 12% coupon per annum, and can be converted into Bahamas Petroleum shares at 2.5p per share. The agreement is with Australian-domiciled investment firms, Bahamas said in October.
Bahamas said: "The company considers that with the success of the open offer and the placing, and when combined with the conditional convertible note, it will likely have sufficient funds to undertake the drilling of an initial exploration well in The Bahamas during 2020.
"Moreover, in addition to the proceeds from these activities the company continues to pursue a farm-out as part of its overall funding strategy, and has received proposals for, and continues to develop and assess a number of other financing options."
By Eric Cunha; ericcunha@alliancenews.com
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