Jersey Oil & Gas raises £1.6m through placing

30th Nov 2016 09:59

(ShareCast News) - Jersey Oil & Gas, an AIM listed independent upstream oil and gas company, announced that it has raised around £1.6m, before expenses, through a placing of 1.5m shares.The company focuses its operations on the UK continental Shelf (UKCS) region of the North Sea.The placing of ordinary shares was done through the company's agent Arden Partners at 1p each to new and existing shareholders, at an issue price of 110p per placing share. Arden partners has since been appointed as the company's sole broker.The company's board of directors subscribed for 120,454 placing shares at the placing price raising £0.13m.The net proceeds of the placing will be used towards technical studies and evaluation in support of the committed exploration of Verbier Well, which is to be drilled in Summer 2017 as well as general working capital purposes.A total of 540,000 options have been granted to the company's directors after the completion of the placing at an exercise price of 110p.Andrew Benitz, CEO of Jersey Oil & Gas, commented: "Today's funding will allow us to conduct further technical studies to advance our knowledge of the Verbier Well ahead of drilling, which we believe will be of benefit to our shareholders. It further serves to strengthen the group's financial position as we continue to pursue a number of production acquisition targets under evaluation in the UKCS."The share price rose 10% to 133.10p at 1052 GMT on Wednesday.