LONDON (Alliance News) - Egdon Resources PLC seeks to raise GBP2.2 million in gross proceeds via a share open offer to advance the company's exploration and appraisal work programme.
The UK-based exploration and production company said Wednesday it will issue 43.3 million shares at 5 pence per share, a 3.9% discount to the average share price in the seven days prior to open offer announcement.
Net proceeds from the open offer will amount to GBP1.9 million, the company said.
Egdon Resources has received irrevocable undertakings representing 45.1% of the open offer from shareholder Petrichor Holdings Cooperatief UA and Premier Oil PLC. A waiver to the potential requirement for Petrichor to make a mandatory cash offer has been granted.
Egdon Resources also said that average monthly production during the period from January to April was 238 barrels of oil equivalent per day versus 85 boepd in the comparative year ago period.
Shares in Egdon Resources closed 2.5% higher at 5.38 pence each. The open offer will result in 14.3% dilution to the company's issued share capital.