(Alliance News) - Predator Oil & Gas Holdings PLC said Friday it has conditionally placed 89 million new shares at a price of 4 pence each to raise GBP3.56 million.
The Jersey-based oil and gas company with operations in Trinidad, Morocco and Ireland said the placing was "significantly oversubscribed and it utilises all of the company's existing headroom."
The company said the proceeds will be used for the drilling of the Moulouya well onshore Morocco. Predator said it will continue with rapidly progressing the project towards spudding.
In addition, the company said it will be upscaling the potential for profits from Enhanced Oil Recovery utilising carbon dioxide, onshore Trinidad and for general working capital.
Predator said this further capitalisation creates the ability to secure an in-country rig to drill the Moulouya well, resulting in a significant saving in rig mobilisation costs compared to sourcing overseas.
It also facilitates the earlier return to the company of the first USD1.0 million of the USD1.5 million Bank Guarantee in place with ONHYM after the completion and reporting of drilling operations, the company noted.
Chief Executive Officer Paul Griffiths said: "I am very pleased to announce this oversubscribed placing that results in the business being very well capitalised as we enter a period of potentially transformational business operations."
Predator shares were trading 16% lower in London at 4.20 pence each on Friday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Predator Oil (PRD)