Finance News Oil & Gas

Borders targets £2.5m in 44% discounted fundraise

Borders & Southern Petroleum plc has raised £2.5 million before expenses through a firm placing and a conditional placing and conditional subscription.

ISSUE PRICE

Subject to the shareholder approval, the company will issue 142,857,138 new ordinary shares each at 1.75 pence, an approximate 44% discount to its closing price of 3.15 pence on 30 November 2022.

FIRM PLACING

The firm placing of 105,714,281 ordinary shares raised £1.85 million.

CONDITIONAL RAISE

The conditional placing of 17,142,857 ordinary shares raised £300,000.

The conditional subscription directly with the company by its non-executive chairman Harry Dobson of 20,000,000 ordinary shares raised £350,000.

Mr Dobson is expected to have a result shareholding percentage in Borders & Southern of 8.9% post-first admission and 11.1% post-second admission (81.3m shares).

Following first admission of the firm placing shares, the total issued share capital of the Borders & Southern will comprise 693,671,599 ordinary shares each with voting rights.

USES

The company will use the proceeds to advance studies in its 100% Darwin gas condensate discovery offshore Falkland Islands.

Costs include Borders & Southern’s licence fees, discovery area fees, technical and commercial studies, general and administrative expenses.

Funds will also advance the Darwin project towards appraisal and development of Darwin via a conventional FPSO and phased development concept.