NU-Oil and Gas (LON:NUOG) has raised £435,000 through the placing of shares to institutional investors.
The company, formerly Enegi Oil, is issuing 124.2mln new shares at a price of 0.35p each.
Cash proceeds are earmarked for the group’s stranded and marginal field strategy, and to support the acquisition of projects.
NU added that it is currently in discussions which it hopes will lead to one or more projects being secured in the short term.
Nigel Burton, the company’s recently appointed chief executive, said: "The Directors are pleased that, despite difficult market conditions, the company has raised sufficient funds to enable it to continue implementation of the business plan.”
Burton highlights that the aim is to secure the first development project which will use the low cost solutions devised and delivered by ABT Oil and Gas and the Marginal field development (MFD) Consortium.
“Achieving this goal will create significant value and transform the prospects for the company," he added.