Deltic Energy PLC on Tuesday said it has raised £15 million via a ‘significantly oversubscribed’ placing and subscription.
The natural resources investing company said that 426.3 million new shares have been placed with new and existing investors at a price of 3.5 pence per share. The placing price represents a 9.8% discount to the closing price of 3.88p on Monday, being the last business day before the announcement.
Its shares were down 5.1% to 3.73p each in London on Tuesday morning.
A further, 2.3 million shares have been subscribed to by the company’s directors and senior management, at the placing price.
On Monday, London-based Deltic said that the fundraise will be used to fund its share of the Selene well in the Southern North Sea and fund further investment in its existing licence portfolio. The Selene well is operated by Shell PLC.
Deltic has also announced an open offer to raise to £2 million through the issue of up to 58.6 million shares at the placing price.
The fundraising is subject to shareholder approval and will be voted on at the company’s general meeting on September 30.
Chief Executive Graham Swindells said: ‘We are very grateful for their support in what has been an oversubscribed transaction and we are happy to offer our wider existing shareholders the opportunity to participate in the open offer. It has been a strong endorsement of Deltic’s equity story and we are looking forward to our assets moving into the operational phase with the Pensacola well in the coming weeks and following that with our work on the Selene prospect, which is anticipated to spud within the next 12 to 18 months.’
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