Chariot Oil & Gas Limited (LON:CHAR) has confirmed a US$15mln fundraise has now taken place, via a share placing to new and existing institutional (and other) investors.
Some 82.5mln new shares are being issued, at a price of 13p each. In late afternoon trading, Chariot shares were changing hands for 15.1p each, down just 0.3% on Monday's close.
READ: Chariot Oil & Gas to launch equity funding so it can add a new well to 2018 campaign
The capital injection is intended to allow Chariot to drill the Prospect S exploration target offshore Namibia, giving the explorer a second high impact well this year. It also has a 10% stake in the Eni operated Rabat Deep venture, offshore Morocco.
In addition to the now closed equity placing, the company intends to raise a further €5mln through an open offer share sale to existing shareholders who will have the right to buy one new share for every eight shares they own.
Completion of the new funding arrangements remains subject to approval from shareholders. To that end, a general meeting will be convened on March 27.
"This fundraise will represent another major step forward for Chariot, and one which allows the company to participate in two giant-scale wells in this calendar year whilst capturing the bottom of the cost cycle for drilling,” said Larry Bottomley, Chariot chief executive.
“Success in either well would be transformational, and would also de-risk significant additional portfolio in the relevant licence.
“This comes after continued investment throughout the portfolio during the industry downturn which has allowed Chariot to build a drilling and prospect inventory of giant-scale opportunities.
Continues to progress operations in Namibia
Bottomley added: “We will continue to progress operations in Namibia to drill Prospect S in H2 this year to benefit from synergies with third-party operations, and, in combination with our other partners, we continue to support Eni in their operations on the RD-1 well in Morocco which is scheduled to spud in March 2018.”
He also highlighted that “the equity markets support Chariot's investment thesis”.
“We look forward to welcoming new investors and are grateful for the continuing support of existing shareholders who have the opportunity to participate through the open offer.
“We appreciate both groups for supporting Chariot in a very exciting near-term drilling programme as well as for the continued development of the Company's broader portfolio in Brazil and our other permits in Morocco."
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