LONDON (Alliance News) - Caracal Energy Inc Thursday said it intends to raise up to USD200 million through a placing and open offer of new shares, and intends to use the funds raised to accelerate its exploration programme.
The oil and gas explorer in Chad will spend most of the money on drilling and completing ten exploration wells in 2014 at the site containing the Badila and Mangara oil fields in the south of the country. It is required to relinquish 50% of the site in 2016 under production sharing agreements it has, and wants to make sure as many material prospects as possible are drilled prior to that.
Caracal produced its first oil from Badila in September. It is targeting first production from Mangara in the second quarter of 2014.
The price of the offer will be set after an accelerated book-building process for the placing.
Caracal Energy shares closed down 2% at 480 pence in London Thursday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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