Touchstone Exploration Inc (LSE:TXP, TSE:TXP) has raised £3mln through the sale of shares to institutional investors in the United Kingdom.
The share placing prices the new equity at 11.5p per share, a 6.1% discount to yesterday’s closing price.
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Cash proceeds from the placing are earmarked for an expanded well drilling programme.
Touchstone previously lined up a four well programme for 2018 but that will now be expanded to ten wells. Additionally, the company also intends to carry out a programme of recompletions for 24 existing wells.
"We are pleased to be able to commit this additional funding into a continuous ten well 2018 drilling programme in Trinidad,” said Paul Baay, Touchstone chief executive.
“Not only will the enlarged capital programme allow for greater cost efficiencies, it will also satisfy our lease operatorship agreement minimum work obligations through 2020.
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“We would like to thank our shareholders for their continued support as we enter an ambitious growth period in 2018."
In a note, Shore Capital analyst Craig Howie said: “Given the very high rates of drilling success achieved in the year to date, and resultant incremental production additions, we are delighted to see this planned expansion of activities and continue to believe that Touchstone has emerged as one of the most interesting relative value plays in our small cap E&P coverage universe.”