Leeds-based President Energy said today that it plans to raise £6million ($8million) through a share placing.
The AIM-listed firm said directors Rob Shepherd, Miles Biggins and Jorge Dario Bongiovanni intend to participate in the placing.
President Energy, an upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, intends to use the funds to make acquisitions and convert debts.
The business said proceeds would also speed up work at the recently acquired Puesto Flores and Estancia Vieja fields, Argentina.
Those assets could increase President’s reserves and production to in excess of 3,000 barrels of oil equivalent per day.
President said in a statement: “The work programme can be funded from existing cash flow but the additional funds from the placing will reduce the burden on the company’s operating cashflow and allow the company to be more flexible in its approach to funding the capital expenditure requirements at the fields.”
President shares were down 10.5% to 10.62p in early trading.
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