(Alliance News) - Prospex Oil and Gas PLC on Thursday said it has raised a total of GBP720,000 through a placing, the proceeds of which will fund the acquisition of a 50% stake in gas production & power station operation El Romeral located in southern Spain.
The stock was trading down 0.2% at 0.13 pence each on Thursday afternoon in London.
The exploration investment firm issued 600 million shares at 0.12 pence per share to raise GBP720,000.
El Romeral is being acquired by Tarba Energia SL, with funding provided by Tarba's shareholders, Warrego Energy Ltd and Prospex. Prospex said that the acquisition will lead to a step-up in its production profile to five producing gas wells, which have the potential to generate over 9 million standard cubic metres of gas net in 2021.
The remainder of the placing funds will go towards the 2020 work programme planned for Prospex's 15%-owned Tesorillo gas project in Spain, as well as for general working capital purposes.
Chief Executive Edward Dawson participated in the placing by purchasing 50 million shares at the placing price for a total of GBP60,000, thereby increasing his holding to 2.5% of the company's enlarged issue share capital.
Non-Executive Chair Bill Smith purchased 33.3 million shares for a total of GBP39,999, increasing his interest in the company to 1.9%
Non-Executive Director James Smith also purchased 33.3 million shares at the placing price for GBP39,999 increasing his shareholding to 2.0% of Prospex's enlarged issued share capital.
"Securing these funds at close to market prices from new and existing shareholders and certain members of the board represents an endorsement of the low risk, low cost opportunity that El Romeral offers to build material production and revenues," said Non-Executive Chair Smith.
By Ife Taiwo; ifetaiwo@alliancenews.com
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