Borders & Southern Petroleum (AIM:BOR) has raised £2 million, before expenses, through a direct placing of shares to a single investor, the London-based oil and gas company with assets offshore the Falkland Islands said.
The proceeds will fund the continued development of Darwin, the company's wholly owned gas condensate discovery, covering licence fees, discovery area fees, technical and commercial studies and general administrative costs as it works toward commercial appraisal.
Borders & Southern holds a 100% interest in three production licences spanning nearly 10,000 square kilometres in the South Falkland Basin, where it has shot 2,517 square kilometres of 3D seismic and drilled two exploration wells, the first of which made the Darwin discovery.
"We remain completely focused on delivering the best deal possible for all shareholders, and today's announcement further strengthens our position as we work towards concluding the farm-out process," said chief executive Harry Baker.
The placing comprises 17.39 million new shares at 11.5p each, a price roughly 42% above the stock's 8.1p close on 9 October. Alongside the shares, Borders & Southern will issue 8.7 million warrants exercisable at 20p per share for 18 months, after which they lapse.