Enegi raises £3m
ENEGI Oil, the Manchester-headquartered oil & gas firm with interests in Canada, Ireland and the North Sea, has raised over £2.9m through a share placing.
The company has placed 19.5m new shares with institutional investors at a price of 15p per share – a discount to yesterday’s closing price of 19.25p.
The company said that it planned to use the funds to buy more equipment at its Garden Hill South site in Newfoundland to allow it to move quickly into production once it gains regulatory approval to operate its most advanced PaP#1 well, which is currently flowing on a 24-hour basis. It will also allow it to bring in extra staff.
The company also plans to use some of the proceeds on other prospects, such as the licenses for which it recently bid in the North Sea, to develop its strategic partnership with Atlantic Buoy Technology and for further evaluation of its shale gas prospect in County Clare, Ireland.
The shares being placed represent around 15.5% of the company’s existing base.
Enegi CEO Alan Minty said: “We are enthused at the level of support for the company demonstrated by institutional investors through their participation in the placing and these funds provide a solid foundation from which immediate planned activity will be implemented.”
