Corcel PLC (LSE:CRCL) share price dropped, losing around 16%, as the company announced a £1.22 million equity raise at the same time as its exposure to Block KON-16, in Angola, increased.
Corcel subsidiary Atlas Petroleum Exploration Worldwide Limited (APEX) saw its stake in the project increase by 20% to 55%, after a partner withdrew from the project – Corcel incurred no additional cost to acquire the project stake.
It meanwhile completed a £1.22 million fundraising, with 1.22 billion new shares being issued, priced at 0.1p per share. The proceeds are earmarked for ongoing operations in Angola and Brazil.
The shares were bought by a group of strategic investors who, according to Corcel, have considerable experience in the oil and gas sector.
“The support secured in this fundraise from strategic investors that have deep experience in the oil and gas sector, and in Angola in particular, is a testament to our sound strategy and a foundation for sustainable growth,” Corcel chief executive Scott Gilbert said in a statement.
He added: “We continue to pursue a strategy focused on our three energy verticals - exploration, near-term production, and the support for energy transition through our battery metals portfolio.
“This significant increase in our working interest in KON-16 is an important milestone. Increasing our stake at no cost to the company demonstrates the creative and accretive nature of the opportunities we are continuously targeting, and sets us up with a commanding position in what we believe to be the most exciting onshore block in the Kwanza basin, having had oil shows in the pre-salt from the historical well drilled in the 1960's.”
In London, Corcel shares were down 16.46% changing hands at 0.11p each on Tuesday.