North Sea minnow Jersey Oil and Gas has raised funds to pay for an appraisal programme on the North Sea Verbier field.
The firm announced last month that it was aiming for £20million through an equity placement for the work on the Statoil operated field in the outer Moray Firth.
Jersey announced today that it had raised around £23.76million through the share offer.
Chief executive Andrew Benitz, said: “This has been an exceptional few months for Jersey Oil and Gas following the drilling of the Verbier oil discovery, which the operator, Statoil, initially estimates to contain gross recoverable resources of between 25 to 130MMboe.
“With today’s successful completion of the placing and offer, we now have funding in place for the anticipated Verbier appraisal and Cortina exploration drilling programmes, the details of which will be decided upon and finalised with our partners, Statoil and CIECO V&C Limited, following full evaluation of the discovery well results alongside the existing 3D seismic data.
“The Board and I would like to welcome our new shareholders and acknowledge the valuable support of our existing shareholders, and we look forward to delivering further value as we continue to pursue our production focused acquisition strategy in the UKCS.”
A recent sidetrack well on Verbier led to the discovery of commercial reserves.
The proceeds of the placing will also help pay for exploration drilling on the nearby Cortina prospect.
Jersey has had a bumpy ride with Verbier.
In September, the firm’s shares nosedived after it announced the results of an exploration well had been disappointing.
But a week later, Jersey said a sidetrack well would be drilled, sending the shares back up.
This month, Statoil revealed that the sidetrack well had found recoverable resources of between 25million and 130million barrels of oil.
Statoil owns 70% of the licence, Jersey has 18% and CIECO is on 12%.