£1.5m fundraising for Enegi
NORTH WEST oil exploration business Enegi Oil is raising £1.5m with a new share placing.
The Manchester company is placing 30 million new ordinary shares at 5p each. Enegi said the offer, which was not being underwritten, would fund the continued development of the company.
The business is hoping to exploit exploration opportunities in Newfoundland, Canada, but has encountered a number of setbacks in recent months.
Enegi also announced it had signed an agreement with a third party to invest in a Canadian site run by its subsidiary PDI Production. It is selling a 30% interest in the well for £1.4m.
In February PDIP became insolvent but today Enegi said it had “worked tirelessly” to help reschedule these liabilities. PDIP remains in dispute with five creditors but hopes to reach agreements soon.
In a statement chief executive Alan Minty, said: “We are delighted with the support that we have received during this placing. These transactions allow us to resolve the issues of the past few months and refocus on developing our oil and gas assets.
“I would like to thank all our staff who have worked tirelessly to achieve this and now look forward to moving the company ahead and developing our portfolio.”
Shares in the company, which in the year to the end of March posted a £2.5m loss, have plunged from 69p in February to around 8p after disappointing drilling results at one of its key sites in Newfoundland.
