Eco (Atlantic) Oil & Gas to Raise Up to $25 Mln Eco (Atlantic) Oil & Gas Ltd. said late on Tuesday that it will raise up to $25 million via a share placing to institutional investors, a retail offer via the PrimaryBid platform and a subscription by way of a private placement. It will use the funds primarily to pay for its share of the drilling of a well in South Africa.
The London-listed oil-and-gas company, which has offshore license interests in Guyana, Namibia and South Africa, said the placing will be conducted via an accelerated bookbuild process and that it will place shares at 30 pence each. The placing will be conducted in the U.K., Norway and certain other jurisdictions outside Canada, the company said.
It added that Africa Oil Corp., a substantial shareholder, intends to enter into a subscription agreement for up to $4 million by way of a private placement for new common shares. The company said this was subject to its resulting interest in Eco's share capital staying below 20%.
The company said it will use the net proceeds to fund its share of the drilling of the Gazania-1 well on Block 2B offshore South Africa--estimated to be around $23 million--cover geological and geophysical expenses across its portfolio and license fees in Namibia and on Block 3B/4B in South Africa, as well as for general working capital purposes.