North sea exploration and appraisal group Trap Oil (LON:TRAP) has raised £4.3 million in a share placing priced at 21p per share.
Cash from the fundraising will support anticipated cashflows from oil production at the newly operational Athena field, where earlier this year the company agreed to buy a 15 percent interest from Dyas for £34.5 million.
Together, the funds available to Trap Oil will help to meet its commitments in relation to a proposed acquisition of the Trent East interest, potential commitments in respect of the company’s 27th Round licence applications, additional drilling opportunities and to provide general working capital for the group.
Mark Groves Gidney, the chief executive of Trap Oil, said: “We are pleased with the interest and support received from both existing and new investors in Trapoil in very difficult market conditions. The net proceeds from this conditional fundraising, which has been restricted to the amount for which approval was received at the recent AGM, will allow the company to pursue opportunities where we can become an operator but also to grow and enhance our exploration portfolio via potential investment in new licence awards from the 27th Round, with results currently expected to be announced by DECC later this year.”
