The Baron Oil PLC (LON: BOIL) share price edged higher today after announcing that it had completed its latest capital raise worth £5.36 million. The company raised £5 million via the main placing and subscription
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The remaining £0.36 million was raised via the REX retail offer that allowed existing retail shareholders to participate in the offering. The company sold 4,166,666,667 Placing and Subscription Shares and 302,856,299 REX Retail Shares.
Investors reacted positively to the announcement as the company sold its new shares at 0.12p, a price near its current trading price. BOIL shares are up 95.32% this year despite the recent pullback of over 30% in the past week.
BOIL shares had soared in late October after the company updated its aggregate gross Gas-In-Place estimate for the Chuditch PSC, whose official name is the TL-SO-19-16 Production Sharing Contract, offshore Timor-Leste.
The new GIP estimate of 5,500 BCF surpassed the previous estimate of 3,889 BCF, with the higher estimate resulting from the reprocessing of 3D seismic data. In addition, the higher gross figures raised the Best case Recoverable Resource estimate to 3,625 BCF from the previous estimate of 2,924 BCF.
The updated figures were gathered from the preliminary interpretation of the Chuditch PSC reprocessed 3D seismic data. Furthermore, Baron Oil has engaged the services of Consultancy group ERCE has been engaged to prepare a competent person review (CPR) and provide independent validation of its internal resource estimates.
BOIL shares continue to attract investor attention following the sudden rally in their shares after the updated Chuditch PSC data release. However, the shares have since fallen back, as is typical with parabolic rallies.
Investors looking to acquire BOIL shares may find their current prices quite attractive.
*This is not investment advice.
Baron Oil (BOIL) share price.
The Baron Oil (BOIL) share price rose today after the company completed its latest capital raise.
