Red Rock Resources (AIM:RRR) is one of the biggest movers on the AIM market this morning, falling 23.08% after announcing investment in Elephant Oil.
The company have issued a total of 689,473,706 ordinary shares of 0.01p each, representing proceeds of £327,500. 421,052,632 of the new Shares represent a £200,000 subscription by Elephant Oil Limited.
Elephant Oil is a privately held independent oil and gas exploration company focused on West Africa. Elephant holds an 100% interest in the production-sharing contract on Block B, onshore Benin, on the prolific West Africa Transform Margin. The block covers 4,500 km2 and is one of only two onshore blocks to have been made available by the government of Benin.
Andrew Bell, Chairman, states: “Following continuing discussions with Elephant, Red Rock has determined to press forward with its investment in Elephant’s oil exploration activities in West Africa, and consequently to undertake the current funding exercise. We consider that the Elephant team is making rapid progress in working to expand its footprint and add further oil opportunities in West Africa and our own exploration activities in Ivory Coast have given us a strong conviction of the economic prospects and investment merits of the region, as well as of its geological prospectivity.”
