Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) has raised US$13mln through a bookbuild placing at 20p per share, around a 15% discount to the previous close.
Each new share comes with half a warrant exercisable at 24p (for a whole warrant) within six months.
The net proceeds in conjunction with COPL's other financial resources are intended to be used for facility upgrades and drilling activities, and for general working capital.
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Arthur Millholland, COPL’s chief executive, said: "We remain fortunate to have a strong and supportive equity ownership base.
“We are taking this opportunity to ensure they can participate in our future expected success and fund the proposed expansionary capex that will be associated with our new and increased ownership in our flagship assets."
Shares fell 14% to 20.25p.