Junior UK Oil & Gas Investments PLC (LON:UKOG), which has a stake in the high profile Horse Hill project near Gatwick, has raised £4mln via a share placing to further advance its Weald Basin portfolio.
The cash comes from the issue of over 266.6mln shares at 1.5p each to institutional funds - that's around a 21% discount to last night's closing price of 1.9p.
The firm, whose shares are down over 10% on Thursday to 1.7p, said the funds may also be used to further investment into new Weald Basin and Southern UK onshore oil and gas assets.
The firm currently holds 11 oil and gas assets held under Petroleum Exploration and Development Licences (PEDL). It recently lifted its stake in two Horse Hill licences to 27.3%.
The operator at the project is Horse Hill Developments Limited (HHDL).
Earlier this year, flow testing at Horse Hill measured aggregate flows amounting to 1,688 barrels of oil per day from three separate zones in the vertical exploration well.
The focus for future activities in the licences will be to carry out further extended well tests in the Kimmeridge Limestones and appraise the Portland oil discovery