Borders & Southern Petroleum (AIM:BOR) shares slumped nearly 40% after the company unveiled a dilutive and discounted £2.5mln equity raise, with proceeds earmarked to pay licence and other fees as it seeks to advance the Darwin project in the Falklands.
News that it is selling 142mln new shares priced at 1.75p each saw the market price of the share drop to 1.98p - versus Tuesday’s closing price of 3.15p.
"This fundraising will allow us to advance further technical and commercial studies for a potential appraisal and development of Darwin via a conventional FPSO and phased development concept,” said chief executive Howard Obee.
"This is a period of elevated world-wide energy prices and increasing global E&P activity and Darwin is a large undeveloped discovery with attractive scoping economics.
“We look forward to reporting on the phased development concept as our studies progress.”