Mediterranean Oil & Gas PLC (AIM: MOG) said it is raising £4.25 million via the issue of convertible loan notes and will use the money to help develop the 100 percent-owned Ombrina Mare oil and gas field offshore Italy.
The issue has been largely committed to by existing shareholders, with convertible loan notes to a value of £3.1 having been authorised. The balance of £1.15 milion is earmarked for unrelated parties.
Entities associated with chairman Michael Bonte-Friedheim and executive director Anthony Trevisan have subscribed for £130,000 and £650,000 worth of loan notes, respectively.
Substantial shareholder Stark Master Fund Ltd has subscribed for £1.3 million worth of loan notes.
Bonte-Friedheim commented: “In the current challenging economic and market conditions, this raising will place the company on a sound footing to continue to aggressively pursue the development of Ombrina Mare.”