LONDON (Alliance News) - Independent Oil & Gas PLC on Wednesday said it intends to raise GBP2 million through an open offer for the working capital requirements and ongoing project management costs.
The AIM-listed company plans to issue up to 20.1 million shares at a price of 10 pence each, a discount of 42% to the closing price on Friday last week.
Independent Oil & Gas shares were trading 8.0% lower on Wednesday at 13.0p each, giving it a market capitalisation of GBP18.0 million.
The exploration and development company said it plans to use the proceeds from the placing to fund its working capital requirements and ongoing project management costs. This will allow the company to continue to progress its ongoing farm-out discussions.
On Monday, Independent Oil & Gas said it had raised GBP16.6 million through a placing of 165.8 million shares at 10p each to fund the drilling of an appraisal well. In addition, the company announced plans to issue another 2.8 million shares through subscription to raise GBP275,000.
Proceeds from Monday's placing and subscription are intended for drilling of an appraisal well at its Harvey licence in the southern North Sea. The company also plans to use around GBP2.5 million to fund a field development plan for its Goddard field, which lies 70 kilometres north of the Norfolk coast.
"The placing, subscription and open offer are all key to progressing our plans to become a substantial UK gas producer," Chief Executive Andrew Hockey said Wednesday. "They will put us on track to advance into an exciting new phase and execute our strategy on behalf of our long-term shareholders and new institutional investors."