Business
Issue of Equity - Placing
Issue of Equity - Placing.
About this update from Borders & Southern Petroleum Plc
[{"type":"text","content":"\n RNS Number : 1097D Borders & Southern Petroleum plc 26 November 2009 \n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, JAPAN, CANADA, AUSTRALIA, NEW ZEALAND OR THE REPUBLIC OF SOUTH AFRICA\n\n26 November 2009\n\nBorders & Southern Petroleum plc\n(\"Borders & Southern\" or the \"Company\")\n\nPlacing of 234,234,234 new Ordinary Shares at 50p\nto raise £113.1 million (net of expenses)\n\nBorders & Southern, the independent oil and gas company focusing on exploration in the South Falklands basin, is pleased to announce that it has conditionally raised £113.1 million (US$188.4 million) net of expenses through a placing by Mirabaud, Ocean and Panmure Gordon with institutional investors of 234,234,234 new Ordinary Shares in the Company at 50p per share. The Placing is subject to Shareholders approving certain resolutions at an extraordinary general meeting to be held on 14 December 2009. \n\nThe Company will today post to Shareholders a circular in connection with the Placing (the \"Circular\"), which will be available at the Company's website at www.bordersandsouthern.com. \nBackground\nThe Company was formed in June 2004 and was granted five production licences by the Governor of the Falkland Islands over 19,598 square kilometres of the Falkland Plateau sub-basin, southeast of the Falkland Islands, with effect from 1 November 2004.\nTo date, the Company has fulfilled all work programme obligations of the production licences, having acquired, processed and interpreted 2,862 km of 2D seismic data and 1,492 km of 3D seismic data, as well as having commissioned and completed numerous technical studies. \nReasons for the Placing and use of the proceeds\nAs previously reported, the Company's understanding of the geology of its licensed acreage covered by its 2D and 3D seismic surveys has increased significantly. As noted in the Company's operational update released on 21 January 2009, multiple play fairways and potentially large prospects have been identified. These display geophysical attributes which the Board believes should enable the Company to reduce the risk associated with exploring them. These attributes include seismic amplitude conformance to structure, flat spot and AVO anomalies and ...