The funds will be raised through a placing at a minimum price of 200p.
Companies: Jersey Oil & Gas PLC
Following on from the announcement less than a fortnight ago that Jersey Oil and Gas' (LON: JOG) Verbier sidetrack had struck oil, the Group has said today it will look to raise £20m to further fund the project.
By way of an "accelerated" bookbuild, a placing will be launched at a minimum price of 200p, and will be used to further fund the appraisal programme at Verbier and for further drilling at its Cortina site.
In addition to the £20m placing, JOG is also looking to raise an addition £4m to "qualifying participants".
It was recommended by joint venture partner Statoil that a side-track would be drilled after the initial well only uncovered water-bearing sands, causing the stock to collapse.
The decision proved fruitful, uncovering an estimated 25-130 million barrels of oil, with a minimum proven volume of c. 25 million barrels. JOG has an 18% interest in the Statoil venture.
Our CEO Rob Mundy flagged the placing in his article on the situation earlier this month, saying:
"We wouldn't be surprised to see a placing coming soon, especially as it will be far less dilutive at these levels. However, it may be in Managment's best interest to wait for further progress and raise equity at a higher valuation if the business can fund itself up until that point."
The stock was trading at 216p this morning, slightly below the 220p price before the September collapse.
