www.wessexexploration.com
Wessex Exploration plc (Wessex) was formed to explore the Wessex and Weald Basins of southern England at a time when the prolific Sherwood Sandstone reservoir had just been discovered in the giant Wytch Farm oil field and smaller oil and gas discoveries were being made in the Weald Basin. Wessex completed a regional geological study of these basins and concluded that the complexity of the stratigraphy, structure and geological history of the basins required a careful, disciplined and highly technical approach to hydrocarbon exploration and that additional significant hydrocarbon potential remained in place.
Wessex Exploration raises £12 million to maintain its participation in Guyane oil block
Wessex Exploration (LON:WSX) said it has successfully raised £12 million which will be used to fund its continued participation in the Guyane oil block.
A total of 240 million shares were placed at 5 pence each, which will expand the company’s equity base by a third.
The modest 0.3 pence discount to last night’s closing share price suggests a great deal of support for the fundraiser.
It also reflects the huge interest in the potentially transformational events off the coast of the tiny South American state.
In September operator Tullow Oil (LON:TLW) revealed the Zaedyus well on the Guyane block had uncovered 72 metres of net pay oil in two turbodite fans.
The discovery effectively proved that Zaedyus is the mirror image of the Jubilee Field on the other side of the Atlantic off the coast of Ghana.
Wessex owns a 1.25 per cent stake in the exploration licence held via a joint venture company called Northpet Investments, which is 50 per cent owned by Northern Petroleum (LON:NOP).
The other partners are Shell (LON:RDSA), which is taking over operatorship of the Guyane licence, and Total.
On November 9, Tullow confirmed the partners were working on the 2012 exploration programme, which will include 3D seismic and the drilling of two wells.
This is expected to commence in mid-2012 once all necessary approvals have been obtained.
Wessex described the Zaedyus discovery is a “company-changing event”, adding that it has “every intention of remaining part of the consortium”.
Managing director Frederik Dekker added: "We are delighted to announce the placing which will provide the company with the funds required to participate fully in the anticipated Guyane forward work programme and to develop the company's other projects.
“Wessex is very pleased to be associated with the highly skilled and professional team of partners on the Guyane project and looks forward to sharing in any further success."
Wessex’s sister company Bluebird Energy participated in the cash call and now holds a stake of around 9 per cent.
In the same announcement the group revealed it had granted options to directors over 15 million shares.
