Rose Petroleum (LON:ROSE) has told investors it is considering a share placing to raise between £3mln and £5mln to pay for drilling and exploration work.
The proposed funding could enable a programme for up to six wells in the Mancos shale play, in Utah.
“The amount to be raised and the issue price of any new shares has not yet been determined whilst discussions with investors are ongoing, but funds of between £3 million and £5 million have been indicated,” the company said in a stock market statement.
Rose, at the end of April, announced it would focus on the Cisco Dome region of the Mancos licence area with a drill programme pencilled in to start before the end of 2015.
On AIM, Rose shares were down 20% trading at 0.5p following the statement.