Egdon Resources said today that it had raised £2million via an open offer and will use the proceeds to press ahead with the Wressle oil field in Lincolnshire.
Hampshire-based Egdon said the open offer, sent out to shareholders earlier this month, had been 1.3 times oversubscribed.
It will apply for the 15.2million shares, trading at 13.5p each, to be admitted onto the AIM market in London, which should go ahead on November 29.
So far, the company has raised more than £5million through subscription and open offer shares.
Egdon managing director Mark Abbott said: “We are delighted to have received such a positive response from our existing shareholders to the open offer which was oversubscribed.
“Having raised gross proceeds of £5.06million from the subscription and open offer, Egdon is now well capitalized to deliver on our strategy.
“Our near term focus will include gaining the final consent for the development of the Wressle oil field, progressing the company’s 14th round licence evaluations and moving the “A” prospect to drillable status.”