Baron Oil PLC (AIM:BOIL) shares were down 29% in Friday morning’s dealing, accounting for a discounted equity raise that’s bringing £3.26 million into the company.
The junior oil firm is selling £3 million of new shares in a placing arranged by brokers Allenby and Cavendish, and a further £260,000 in a retail offer run via the Winterflood Retail Access Platform - new shares are being sold at 0.05p.
Proceeds are earmarked to support the company's share of expenses related to the Chuditch PSC, offshore the Democratic Republic of Timor-Leste.
"This funding, in conjunction with our existing available cash, will allow us to push on with the preparations for the drilling of the Chuditch-2 appraisal well planned for Q4 2024,” chief executive Andy Yeo said in a statement after Thursday’s market close.
“These preparations will also include progressing drill financing. In a drilling success case, we expect to be able to validate a significant resource to create real value for shareholders.”
In London, Baron Oil shares were down 29% changing hands at 0.053p.