LONDON (Alliance News) - Newly-listed oil and gas exploration company Frontier Resources International PLC Friday said it plans to raise GBP600,000 by way of a placing of 40.0 million new shares at a price of 1.5 pence per share, which it will use to fund operations over the coming months.
Frontier said the placing shares will represent 26.7% of its enlarged share capital. Chief Executive Jack Keyes has subscribed GBP135,000 for 9.0 million shares at the placing price. Keyes currently holds a 21.5% stake in the company, this will increase to 21.8% following the placing.
At the time of its admission onto AIM in July 2013, the company said it expected to raise further funding in mid-2014 to implement the next stage of its exploration projects in Oman. The company also has started to approach industry partners with the intention of farming out an interest in each of its Namibia and Zambia sites.
As part of this potential farm-out process, the company established an online virtual data-room to facilitate data review by interested parties. Earlier this year, Frontier opened the virtual data room for parties interested in farming into Oman Block 38.
Frontier said the net proceeds of the placing will provide additional working capital to progress these farm-out discussions and enable additional technical analysis on Block 38.
The company anticipates funding its further exploration activity and general working capital from the proceeds of a farm-out of one or more of its interests in the second half of this year.
Frontier Resources shares were quoted down 1.5% at 1.70 pence Friday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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