LONDON (Alliance News) - United Oil & Gas PLC said on Friday it intends to raise GBP2.5 million through a placing and subscription of 58.8 million shares at a price of 4.25 pence per share.
Shares in the oil and gas company were down 2.4% at 4.44 pence on Friday.
The company said 57.4 million shares are to be placed by joint brokers Optiva Securities Ltd and SP Angel Corporate Finance LLP, and 1.4 million shares will be subscribed for by Chairman Graham Martin.
The placing and subscription is conditional on shareholder approval when the resolutions are proposed at a general meeting on May 10.
Proceeds will towards the development of the Colter exploration well in the UK, and 3D seismic work on the offshore Colibri project under the farm-in agreement with Tullow Jamaica. The remainder will be used for general working capital.
"We are extremely pleased to continue the progress on our portfolio and with this round of funding complete, we will be in a position to meet our development objectives across our asset base in Italy, Jamaica and the United Kingdom," said Chief Executive Officer Brian Larkin.
"Beyond our current exciting portfolio, we remain committed to identifying new opportunities. We are currently examining a number of potential opportunities to further expand our asset base. These opportunities range from exploration licenses to a portfolio or production assets. We will make further announcements on this in due course," said Larkin.
Following the issue, United Oil & Gas will have 291.1 million shares issued overall.
United Oil&gas (UOG)