Regency Mines PLC (LON:RGM) has announced a £400,000 share placing, priced at 0.6p, with the new funds earmarked for the Horse Hill oil project, near Gatwick airport.
The funding news comes a day after the Horse Hill well’s third and final test zone was confirmed as a success.
Flows from the shallowest part of the well matched the nearby Brockham discovery.
Over a continuous nine hour period, oil from the Portland section of the well flowed at 168 barrels per day, which due to earlier test successes means the aggregate rate for the three test zones exceeded 1,528 bopd.
The company agreed a deal to get back into Horse Hill last month.
The transaction saw the group acquire a 5% stake in Horse Hill Development Ltd, which in-turn owns 65% of the project.
"Our participation in the Horse Hill project will continue to require funding, and we continue to seek onshore oil projects capable of generating cash flow,” said chairman Andrew Bell.
“Overhead costs have been reduced to a minimal amount as we focus on increasing the value of the company to its shareholders.
“With the interests of existing shareholders in mind, we are investigating the possibilities of rewarding them either through a bonus issue of warrants or in some other way."
On AIM, Regency Mines shares fell 26% to 0.6p.