Jersey Oil & Gas raises cash for North Sea well
Jersey Oil & Gas, a UK oil and gas company, has conditionally raised, in the aggregate, approximately £1.6 million (before expenses) through a placing of shares.
The company said that following investor interest which exceeded demand allowing the issue to be increased as well as a scaling back exercise to be undertaken, it has conditionally raised the amount through placing, of 1,454,547 new ordinary shares of 1 pence each in the capital of the company to new and existing shareholders at an issue price of 110 pence per Placing Share.
The issue price represents a discount of approximately 6.8 percent to the Jersey’s closing middle market share price of 118 pence on 29 November 2016.
The net proceeds of the placing will be used towards technical studies and evaluation in support of the committed Verbier exploration well planned for summer 2017 in the UK North Sea.
The rest will be used for general working capital purposes. This will, the company said, ensure the company is funded through the Verbier Well program and has sufficient working capital to continue to pursue its pipeline of production acquisition targets.
The company said: “Following receipt of the net proceeds of the Placing, the Company expects to have sufficient working capital to see itself through to 2018.“
Andrew Benitz, CEO of Jersey Oil & Gas, said: “Over the last year, the Company has successfully delivered on its stated strategy to de-risk its exploration portfolio most notably through its high impact farm-out in Licence P.2170 to Statoil. Today’s funding will allow us to conduct further technical studies to advance our knowledge of the Verbier Well ahead of drilling, which we believe will be of benefit to our shareholders. It further serves to strengthen the group’s financial position as we continue to pursue a number of production acquisition targets under evaluation in the UKCS.”