Lansdowne Oil & Gas (LON:LOGP) said it has raised £10 million through a placing priced at a fraction below the market price, and will use the money to fund its share of the continued evaluation of the Barryroe oil field in the North Celtic Sea Basin.
The group issued 18.18 million shares at 55 pence each to institutional investors. The stock opened the trading session 1 percent higher than yesterday’s close at 58.50 pence.
The placing shares represent approximately 12.9 percent of the enlarged capital.
Chief executive Steve Boldy said: “We will continue to work closely with the operator, Providence Resources (LON:PVR), to focus on the ongoing evaluation work on the Barryroe oil field, following the success of the 48/24-10z appraisal well earlier this year.
“We will also continue to focus on our farm-out campaign for our exploration prospects, where discussions are continuing following the data room exercise held over the summer,” he added.
Lansdowne holds a balanced portfolio of oil discoveries, low and moderate risk gas prospects near existing infrastructure and moderate risk oil prospects.
The company is focused on the underexplored North Celtic Sea Basin which has proven petroleum systems in place for both oil and gas.
The Barryroe licence is operated and 80 percent controlled by Providence, with Lansdowne holding the remaining 20 percent.