LONDON (Alliance News) - President Energy PLC Thursday said it has raised USD50 million through the issuance of 87.6 million new shares at a price of 35 pence per share.
The oil and gas company had said on Wednesday that it planned to raise a minimum of USD40 million through the share placing with an option to increase it to USD50 million.
President also had said that it plans an open offer of shares to existing shareholders in order to raise up to an additional USD7 million, the results of which will be announced shortly.
"I am pleased with fully exercising the upsize facility as a result of an oversubscribed Placing. The Placing will significantly strengthen our financial position and allow us to progress our expanded exploration activities this year," the company's Chairman Peter Levine said in a statement.
On Wednesday, President said it plans to use the proceeds of the share placing and open offer to try to open up a new hydrocarbon province in Paraguay after materially expanding its resource opportunities in the region throughout 2013 and into 2014.
Following the completion of a farm-in agreement announced in January, President Energy will operate three contiguous concessions in Paraguay totalling 24,000 kilometres squared.
The company said that once issued, the shares will represent roughly 28.6% of the entire share capital of President Energy.
It said that as part of the deal, its major investor PLLG Investments Ltd has increased its shareholding in President to 80.0 million shares, or 19.7% of the company.
President Energy shares were down 22.2% to 36 pence, putting it in the top five AIM losers Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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