Dominion Petroleum (LON:DPL) confirmed that the BlueGold Global Fund has subscribed for 150.1 million shares priced at 3.5p each.
Today's share issue is part of the US$50 million funding that was proposed last month.
BlueGold, which is run by non-executive director Dennis Crema, holds 11.26 percent of the company’s issued common share capital.
According to last month’s funding announcement, a big chunk of the proceeds, US$12 million, will be spent on exploration and development in Malta, where the company has just farmed into an offshore production sharing contract.
In May, Dominion entered into a production sharing contract with the Kenyan Ministry of Energy for a 100% working interest and operatorship of the Block L9 in the Lamu Basin, offshore Kenya.
Block L9 was one of the last remaining opportunities for unlicensed acreage along the whole of the deepwater.
East African margin and Dominion believes it represents an ideal opportunity for organic expansion in this increasingly attractive area. Around US$11 million of the proceeds will be used to progress work in Kenya.
In Tanzania, Dominion has been granted a one year extension to the initial exploration period for Block 7 (100 percent Dominion). The extension removes any obligation for the company to relinquish any portion of Block 7 until May 2012, providing Dominion with more time to more fully evaluate the acreage before the mandatory 50 percent relinquishment.
Around US$6 million of the proceeds from the fundraiser will be dedicated to development in Tanzania.
In addition, some US$18 million of the funds raised has been earmarked for the repurchase and cancellation of all the senior secured convertible notes and repayment of any additional amounts owing to noteholders.