Enegi raises £1.3m
NORTH WEST oil exploration business Enegi Oil is to raise £1.3m with a new share placing.
The Manchester company is placing 13 million new shares at 10p each, which will raise around £1.24m after expenses.
This will be the second round of fundraising for the company this year – in August it raised £1.5m by placing 30 million new shares, for the continued development of the business.
These funds will be used to pay CIVC Creditor Corporation C$1m in final settlement of the group’s obligations to the company and to remove the mortgage over PDIP’s hydrocarbon assets.
The company said it is working to de-risk its portfolio of assets and that it intends to use the remaining funds from the placement to review existing seismic data, with a view to embarking on a full seismic programme at a later date.
Alan Minty, chief executive of Enegi Oil said: “With full and final settlement of our obligations to CCC, and the completion of the DLMC farm-out, our restructuring exercise is complete and the company is now in a strong position to deliver value for shareholders and return to what we do best – exploring and developing oil and gas assets.”
Enegi also announced it had signed a farm-out agreement with Dragon Lance Management Corporation for its PaP#1 ST3 well at Garden Hill South in Newfoundland, Canada.
As part of the agreement, DLMC has paid C$130,000 to Energi subsidiary PDIP. DLMC will assume 100% of the total cost, risk and expense, to a maximum expenditure of C$2.5m and in return it will earn a 30% interest in the well.
