Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) has raised £19.5mln in an oversubscribed City fundraiser – cash that will bankroll its exploration efforts offshore South Africa.
Investors subscribed for shares at 30p (a modest discount to last night’s close) via a stock placing and a retail offer overseen by Primary bid. Existing shareholder Africa Oil Corp (TSX-V:AOI) also subscribed for new equity.
"We are delighted with the result of this oversubscribed placing and grateful for the strong demand and support from investors, in particular, our existing shareholders and our strategic alliance partners Africa Oil,” said Gil Holzman, Eco Atlantic chief executive.
He said the capital would be used to support the drilling of the Gazania-1 well on Block 2B, offshore South Africa with work targeted to begin in September.
Block 2B already has a previous light oil discovery: thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters.
Funds will also be deployed on geological and geophysical work, investors were told.