Date: Thursday 28 Oct 2010
Plus-quoted Wessex Exploration wants to raise up to £1.875m from a placing and open offer at 2.5p a share prior to a proposed move to Aim.
Some of the cash will pay the expenses of the oil and gas explorer’s flotation on AIM. The rest will be spent on Wessex’s contribution to drilling offshore of Guyane early in 2011 and onshore exploration in the south of England.
Wessex’s main interest is 1.25% of a licence area offshore of Guyane (French Guiana) in Africa, which it holds via a 50% stake in Northpet Investments Ltd, the owner of 2.5% of the licence area. Tullow is the operator of the Guyane Maritime licence and Shell and Total have also acquired stakes of 33% and 25% respectively.
In southern England, Wessex has a 50% stake in PEDL238, which is just north of the Wytch Farm discovery in Devon, a 30% interest in the PEDL089 licence in Hampshire and 25% of the PEDL239 licence on the Isle of Wight.
There was a cash outflow from operations and investing activities of £905,000 in the year to June 2010. There was £313,000 left in the bank.
The costs of the fundraising will be around £100,000. Shareholders can subscribe for as many shares as they want to in the open offer but if it is oversubscribed they will be scaled back.
WH Ireland is the proposed nominated adviser and broker to Wessex.
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