Lekoil Ltd (LON:LEK) has raised US$12.4mln (£10.15mln) through a placing of new shares to institutional and other investors.
The Nigeria focussed oil firm unveiled the funding late on Friday afternoon, and this morning confirmed it had completed the placing through an accelerated book-build.
Some 48.33mln new shares are being issued at a placing price of 21p, which is a small discount (3.4%) to the group’s closing price on Friday.
Cash raised in the share sale will see the company through to the start of commercial production at the Otakikpo field. Lekoil said this ley milestone is expected to “in the coming weeks”.
"This placing, and our undrawn debt facility, gives us a cushion with which to bring Otakikpo into commercial production and to ramp the field up to our phase one target of 10,000 barrels of oil per day,” Lekan Akinyanmi, Lekoil chief executive.
“I look forward to announcing shortly the company's first production and cash flows."
The new shares start trading in London on October 20.