Victoria Oil & Gas PLC (AIM: VOG) said it is raising £5.3 million before expenses by way of a two-tranche equity placing and has increased its Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd previously announced in April 2009 to £10 million from the original £5 million.
This funding package, which marks the completion of the funding exercise begun in April, will be used to drill the first well and generate first production at the company's Logbaba gas and condensate project in Cameroon.
The company placed 100 million new ordinary shares at 3 pence each. It is seeking shareholder approval at an EGM on July 13 to place a further 76,625,000 shares at the same price to raise £2.3 million before expenses.
To secure additional financial support for Logbaba, the company has been negotiating with a consortium, which has offered to provide not only the rig, but also drilling services and finance for certain wellsite equipment. A binding contract has been signed for the rig and other contracts are expected to be executed in the near future.
The rig, which has been inspected and moved to its departure point, is expected to arrive in Douala by mid-July, Victoria Oil & Gas added.