Business
Proposed Placing to Raise up to GBP 12m million
Proposed Placing to Raise up to GBP 12m million.
About this update from Block Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1788Z Block Energy PLC 15 May 2019 \n\n15 May 2019\n \nBlock Energy PLC\n(\"Block Energy\" or \"the Company\")\n \nProposed Placing to Raise up to GBP 12m million\nBlock Energy PLC, the exploration and production company focused on the Republic of Georgia, today announces its intention to conduct an accelerated bookbuild (the \"Bookbuild\") to raise gross proceeds of up to approximately GBP 12m by way of a placing (the \"Placing\") of new ordinary shares of £0.0025 each in the Company (\"Ordinary Shares\").\nThe Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild, the number of new Ordinary Shares issued as part of the Placing and the price being paid per new Ordinary Share (the \"Placing Price\") is expected to be made in due course.\nMirabaud Securities Limited (\"Mirabaud\") is acting as sole bookrunner in relation to the Placing.\nExpected Use of Proceeds\nThe Company is undertaking the Placing in order to fund the acceleration of its defined development strategy in relation to its rights under the West Rustavi PSA. Over the next 12 months, the Company intends to carry out the following works in West Rustavi:\n· Drill up to four horizontal sidetracks to scale up production and fund future capital programmes.\n· Expand production facilities to increase capacity to 4,000 - 5,000 bbl/d.\n· Acquire 3D seismic to provide critical understanding of subsurface.\n· Appraise two existing gas discoveries.\n· Drill one new well targeting gross contingent 2C gas resource of 608 BCF.\n \nWithin the next 24 months, the Company aims to bring West Rustavi gas reserves into production, to continue oil development and to secure additional licences in Georgia and the wider region.\nAdditional Information on the Placing and the Bookbuild\nThe Placing Price and the final number of new Ordinary Shares to be issued pursuant to the Placing (the \"Placing Shares\") will be determined following the close of the Bookbuild. The Placing Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing Ordinary Shares.\nIt is intended that up to ...