FOGL, the oil and gas exploration company with licence areas to the south and east of the Falkland Islands, is pleased to announce that it has conditionally raised £7.6 million before expenses (£7.2 million net) through an issue of 10,448,099 new ordinary shares of 0.002 pence in the capital of the Company ("Ordinary Shares") with new and existing institutional investors and certain directors of the Company at a price of 73 pence per share (the "Placing Price").
Use of proceeds
The net proceeds of the fundraising will be used to provide additional working capital to fund long-lead drilling equipment and general and administrative costs through 2010 and into 2011. The directors of FOGL (the "Directors") expect to raise the additional capital required to fund the Company's share of the drilling programme through a further farmout and/or equity issue in due course.
Tim Bushell, Chief Executive of FOGL, said:
"I am delighted that institutional investors have shown their support for FOGL's prospects through this placing."