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(Alliance News) - PetroTal Corp said Friday it intends to raise GBP14.1 million through a placing, which will go towards the ongoing development of the Bretana oilfield in Peru, in connection with its proposed reopening which is set to occur in July.
In addition, the proceeds will lead to a stronger balance sheet, allowing PetroTal will be able to finalise a credit facility for daily operations and structure derivatives to minimise the impact of furture oil price fluctuations
The Peruvian exploration & production firm will issue 141.2 million units - each of which is made up of one share and one half of a warrant - at a price of 10 pence per unit.
The price represents a discount of 11% to PetroTal's closing price on Thursday of 11.25p.
Shares in PetroTal were down 0.4% at 11.20 pence on Friday in London.
Auctus Advisors is acting as sole bookrunner on the placing, which Strand Hanson is acting as nominated and financial adviser.
"In light of the recent fall in global oil prices and the temporary shut in of the Bretana oil field, we have sought to preserve liquidity and are taking the opportunity to strengthen the company's balance sheet via this fundraise," said Chief Executive Officer Manolo Zuniga.
"The placing and the arrangement announced with Petroperu today will give PetroTal greater financial strength and sufficient flexibility to prepare for the reopening of the Bretana field, which is expected to occur in July. Additionally, the Petroperu arrangement and support by the Peruvian government, demonstrates that Peru provides an excellent investment climate," Zuniga added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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