PetroTal Closes £14.1 Million Share Placement
AIM-listed E&P independent PetroTal Corp. has closed a placement 141.2 million units at a price of 10 pence per unit, raising £14.1 million (~US$18.0 million). Each unit was comprised of one new common share and a half warrant with an exercise price of 16 pence per warrant.
The placing will result in the issuance of a total of 141.2 million new common shares and 70.6 million warrants, with the placing shares representing approximately 17.3% of PetroTal’s enlarged share capital. Meridian Capital International Fund (MCIF), a related party of the company as defined by the AIM Rules, subscribed for £7.5 million worth of units under the placement.
The company intends to use the proceeds of the placement to fund the ongoing development and the proposed reopening of the Bretaña oil field situated within its 100% held Block 95 in north-eastern Peru, and for general working capital purposes.
The field was temporarily shut-down in May due to a pipeline closure and storage capacity limitations. At the time of the shutdown, Bretaña was producing in excess of 11,000 barrels of oil per day (b/d). The field is expected to resume production in July.
Manolo Zuniga, President & CEO of PetroTal commented, “In light of the recent fall in global oil prices and the temporary shut in of the Bretaña oil field, we have sought to preserve liquidity and are taking the opportunity to strengthen the Company’s balance sheet via this fundraise.”
Auctus Advisors acted the sole bookrunner for the placement. Strand Hanson acted as financial advisor to PetroTal.