North-east company Eland Oil and Gas said tonight it aimed to raise about £10million from the sale of new shares.
Eland, based in Westhill, Aberdeenshire, said it expected the shares were likely to be made available to new and existing “eligible” institutional investors at 34p per share.
The Africa-focused energy company added some the proceeds would be used to fund the re-entry, completion and production of the Gbetiokun-1 well, an existing discovery within the OML 40 licence in the Niger Delta.
Cash will also be used to develop a supplementary export route for production and working capital purposes.
Panmure Gordon (UK) is lead bookrunner for the share placement.
Eland chief executive George Maxwell said: “The initial rate from the Gbetiokun-1 well is expected to be circa 7,800 bopd (barrels of oil per day) gross.
“This project will once again almost double the company’s already significant production profile.”