Orcadian Energy PLC (AIM:ORCA) shares have fallen 30% after the company announced its completion of a heavily discounted placing of new stock.
The oiler raised a total of £500,000 through the sale of five million shares at a price of 10p per share, which was oversubscribed.
The funds from the placing will be used towards license fees, further progress on its Pilot Licence for the field development plan, and for general working capital purposes.
Orcadian CEO Steve Brown believes that the Pilot project is a crucial development for the UK and the industry, with the potential to unlock billions of barrels of viscous oil and reduce global emissions.
Brown stated that the funds raised will allow Orcadian to further advance Pilot and the farm-out process, and that the company is looking forward to a significant year ahead.
At 11.00am, Orcadian shares were changing hands for 10.50p each, down 4.5p on the day. In the last year they have fallen by 75%.