Sirius Petroleum PLC (LON:SRSP) has raised £2mln of new capital that will be invested to support a drill programme at the Ororo field, in Nigeria.
The company said it will use the cash to pay deposits on key equipment and long lead items for the planned work programme.
The placing sees Sirius Petroleum issuing 266.6mln new shares at a price of 0.75p each, plus a further 3.3mln shares at the same price to satisfy fees.
WATCH: Zak Mir on Sirius Petroleum
"We are advancing into the pre-drilling programme of activity and hence the requirement for the funds to support the mobilisation of key equipment and long lead items,” said chief executive Bobo Kuti.
“We have been very pleased with the excellent support from existing and new shareholders in this oversubscribed placing."
The company has also agreed to cancel a convertible loan facility with Calvet International Ltd, which had £630,000 undrawn. The deal will see the company make a £500,000 payment, and it will reduce equity dilution to 59mln shares from 126mln.
Sirius Petroleum last year highlighted a plan to drill three wells at the Ororo field, and secured a three year extension to the licence.
A competent person's report was also commissioned, with an independent consultant estimating ‘significant potential’ at the field, with the ‘high case’ estimated between 7.6mln to 20.5mln barrels.
In December, Schlumberger was hired for what was described as a comprehensive package of managed and integrated products and services on an offshore drilling programme, scheduled for the first half of next year.
At Ororo the company is a partner in a consortium alongside COSL Pan Pacific Drilling, Add Energy, and Schlumberger.