(Alliance News) - Sound Energy PLC on Tuesday said it will raise USD3 million in gross proceeds and will extend its cost reduction programme to include executive directors' pay.
The Morocco-focused upstream gas company has issued 23.8 million new ordinary shares at 10 pence per share, raising net proceeds of USD2.7 million.
Shares in Sound Energy were trading 6.8% lower at 9.88 pence each on Tuesday morning.
The new funds will strengthen the company's cash position whilst it explores the marketing of its Eastern Morocco portfolio which is expected to conclude prior to the end of 2019.
Sound Energy said the structural cost reduction programme announced in May has been extended to include a reduction in the base salaries of all executive directors, amounting in aggregate to a reduction of 29% in these ongoing base salary costs in the six month period from August 1.
Following the issue of the new shares, the company's issued share capital will consist of 1.08 billion ordinary shares.