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Global Petroleum announces placing and subscription to raise GBP 1.40 million

Global Petroleum announces placing and subscription to raise GBP 1.40 million

AIM-listed Global Petroleum has successfully raised £1,327,500 million in aggregate before costs through the Placing of 177,000,000 Ordinary Shares at a Placing Price of 0.75 pence per share. In addition, certain Directors of the Company intend to subscribe for, in aggregate, 9,666,667 Ordinary Shares, raising £72,500. In aggregate, the gross quantum of funds raised by the Placing and the Subscription will be £1.40 million.

As a further component of the Placing and the Subscription,186,666,667 Warrants are also being issued at an exercise price of 1.5p per share for a period of 2 years (one Warrant for every one new Ordinary Share). In the event the Warrants are exercised in due course in full, associated proceeds will be £2.80 million, with the result that the Company will have raised gross proceeds of £4.20 million at a weighted average price of 1.125 pence per share. Panmure Gordon acted as the Company’s sole broker in respect of the Placing.

Rationale for the Placing

On 20 July 2020 Global announced an updated estimate of prospective resources for its licence PEL0094, following its interpretation of the historic 3D seismic data over Block 2011A, which amounted to 687 MMbbl unrisked best estimate net prospective resources. It is the Company’s intention to seek a farm-in partner for exploration drilling on PEL 0094, and potentially also to progress the work programme over the PEL 0029 area.

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Source: EnergyPedia

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