Borders & Southern Petroleum PLC said on Friday that it intends to conduct fundraising of up to US$1.8 million to appraise and develop its Darwin gas and condensate discovery in the Falkland Islands.
The AIM-listed energy company said that Chairman Harry Dobson has agreed to invest US$ 600,000 by way of subscription for 34.7 million shares at a price of 1.3 pence. This represents a discount to the 1.73 pence closing price on Thursday.
In addition, Borders & Southern Petroleum intends to raise a further US$ 1.2 million by way of an open offer of up to 69.2 million shares at the same price.
The net proceeds of the fundraising will be used to enable the company to continue to explore the best options to appraise and develop its Darwin gas/condensate discovery, as well as for general working capital purposes, it said.
Oil and gas exploration Borders & Southern Petroleum has a 100% interest in three Production Licenses in the South Falkland Basin covering an area of nearly 10,000 square kilometers. The Company has acquired 2,517 square kilometers of 3D seismic data and has drilled two exploration wells, making a significant gas condensate discovery with its first well, Darwin.