Cluff Natural Resources (LON:CLNR) said on Wednesday that it would raise 2 million GBP via placement and subscription of 95.2 million shares.
The company said 80.5 million of the shares will be issued via placing and the remaining 14.7 million shares will be issued through the subscription.
According to Cluff, the additional funds raised will fund the process of evaluating and developing its new enlarged portfolio of 10 new blocks in the Southern and Central North Sea. This in the wake of a “highly successful outcome” at the UK’s 30th offshore licensing round.
“Due to the significant expansion of the size and nature of the company’s portfolio of prospects, the board now has the opportunity to accelerate investment in the technical and commercial evaluation of both oil and gas prospects to create a significant pipeline of future drilling opportunities, while continuing its current process of securing partners for its existing licences to implement its planned drilling programme in 2019.” said Chairman, Algy Cluff.
The company have said they expect the new shares to start trading on the Alternative Investmentnt Market on the 4th of July, at a price of 2.1p. With the addition of the new shares, the company’s new share capital will stand at 538.2 million GBP. Following yesterday’s announcement, the price per share rallied to 2.11p, but has dipped 0.36 percent to 2.09p as markets opened this morning.
In addition to the new ALLISS, the firm are committed to seeking out new strategic investors and partners to fund drilling on its existing licenses P2248 and P2252, as well as planning for a multi-well drilling programme in 2019.
