LONDON (Alliance News) - Shares in Prospex Oil & Gas were down 27% Thursday morning after it said it has raised GBP1.6 million in a share placing to support the activities of Hutton Poland Ltd, in which it holds a large minority stake.
Prospex raised GBP1.6 million through the placing of 164.6 million shares at 1 pence each. Shares in Prospex were down 27% to the placing price of 1.00p early Thursday.
The company plans to use the funds for its 49% share of Hutton Poland's exploration budget for 2016. Once funding has been made available, Hutton is planning to move to drill a well on its Bolesaw prospect, targeting a well spud date in the fourth quarter of 2016.
Additionally, Prospex said it has now received a competent persons report from AGR TRACS International Ltd to review the Kolo licence, which Hutton Poland holds. This report says that gross best estimate technical unrisked prospective resources for Bolesaw are estimated at 87.1 billion standard cubic feet.
"We are pleased with the report prepared by AGR TRACS. We believe it demonstrates the significant value in the Hutton Poland investment, GBP5 million to GBP8.4 million, compared to the investment cost of GBP620,000 and the potential for the project moving forward. If successful, a well on the Boleslaw prospect could unlock significant value for the company," said Prospex Chairman Bill Smith in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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