Upland Resources (LSE:UPL) said it raised £310,000 (before expenses) via a placing at a zero discount to the prevailing market price.
The oil junior will issue 124mln new shares at 0.25p each plus 62mln warrants.
Upland, which has assets in Sarawak in Malaysia, the UK North Sea and Tunisia, said chairman Bolhassan Di subscribed for £50,000 of the fundraiser.
Applications will be made to the Financial Conduct Authority for the new shares to be admitted to listing on the official list of the FCA and to the London Stock Exchange’s main
Funds raised will be used to progress activities in Sarawak on Block SK334 including the completion of the joint technical study aimed at de-risking petroleum system elements, sid the statement.
"Our work with Petros and Big Oil Ventures on Block SK344 in Sarawak has attracted the attention of several market participants and we were recently approached by investors who wished to invest on attractive terms.
"Given recent capital market weakness, the Upland board decided that it would be prudent to strengthen the company's balance sheet, with proceeds from the fundraise to be predominately allocated to progressing work in Sarawak and the joint technical study on Block SK344,” Di commented.
Sedimentary basins in Sarawak are proven prolific hydrocarbons bearing basins with continuing recent discoveries, Upland said in a statement Tuesday.
Shares were changing hands 43% higher at 0.39p on Tuesday late morning.