(Alliance News) - Southern Energy Corp on Friday said it has upped the size of its placing in the UK to USD13.5 million from USD12.5 million, due to "strong demand".
Shares in the US-focused natural gas exploration and production company were down 23% to 53.00 pence each in London on Friday morning.
When the UK placing is combined with the USD17.5 million prospectus offering, the total size of the offering has increased to USD31.0 million. This represents 52% of the company's existing share capital, prior to the placing.
Southern Energy said it will use the net proceeds to "accelerate" its planned drilling programme at Gwinville, Mississippi. Further, the placing will increase financial flexibility for potential accretive acquisition opportunities, it added.
Southern Energy expects further drilling at Gwinville to begin in quarter four of 2022.
Chief Executive Ian Atkinson said: "This funding will allow us to pursue significant opportunity for accretive acquisitions in our area of expertise and to continue to act nimbly and opportunistically as we execute our growth strategy."
By Sophie Rose; sophierose@alliancenews.com
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Southern Energy (SOUC)