Tullow Oil has received acceptances for 95.3% of the new shares offered in its £600million rights issue.
The Africa-focused firm said shareholders had accepted their rights to 444.9million new shares at £1.30 each.
Tullow announced its fund-raising plans March in an effort to tackle the company’s net debt, which was almost £4billion at the end of 2016.
The share placing was underwritten by Barclays Bank, acting through its investment bank, JP Morgan Securities and Morgan Stanley.
They will now try to find buyers for the remaining 21.9million shares which were not snapped up in the rights issue.
Tullow’s shares are listed on the London, Irish and Ghanaian Stock Exchanges.
Its shares were up 1.32% to £2.14 at noon today in London.
The firm has interests in more than 100 exploration and production licences across 18 countries.
It was founded in 1985 by Aidan Heavey, who will step down as chief executive after Tullow’s annual general meeting tomorrow.
Mr Heavey will become chairman for a transition period of up to two years.
Paul McDade, currently chief operating officer, will be appointed chief executive.
The firm’s focus has shifted since oil prices collapsed in 2014.
In August Tullow said it would pull the plug on its Norwegian operations in light of “on-going challenges presented by a low oil price”, resulting in 50 job losses.
Earlier this month, Tullow said it had agreed a deal to sell off its interests in Dutch North Sea assets to Hague and London Oil (Halo) for up to £25.4million.
Highlights from last year included the delivery of Ghana’s second major oil and gas development, the TEN fields.
Tullow is the operator of the TEN fields and holds a 47.175% stake.
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