Baron raises £6m for Timor Leste-North Sea assets

Baron Oil plc has conditionally raised £6 million before expenses via a placing, subscription and a retail offer.

DIRECTORS’ DEALINGS

The placing was for a total 4,166,666,667 new ordinary shares of 0.025p each in the company at 0.12 pence per new ordinary share.

Chief executive Andrew Yeo subscribed for 8m new ordinary shares, taking his holding to 193m, equal to 0.99% of the enlarged share capital following admission.

Director of group subsidiaries Andrew Butler subscribed for 50m new ordinary shares to now hold 628,601,442 shares, equal to 3.23% of the company’s share capital.

A separate conditional retail will be offered to existing shareholders of up to 833,333,333 new ordinary shares of 0.025 pence each to raise up to £1m before expenses.

USES

Baron said that 30% of the net proceeds will fund the Chuditch PSC, offshore Timor-Leste (75% interest).

Some 15% will be for the Chuditch bank guarantee, which is the extension of the US$1 million guarantee to 1 August 2023.

Approximately 5% will go towards work on the P2478 licence (32% interest) in the Inner Moray Firth.

The company will allocate 5% to help evaluate potential new ventures, including a possible bid in the North Sea Transition Authority 33rd offshore licensing round.

Some 45% of the net proceeds will fund Baron’s general and administrative expenses of £900,000 and other related working capital of £1.3m.