FALKLAND Oil and Gas (FOG) said yesterday it had conditionally raised about £7.6million in a placing of shares with certain directors and institutional investors to help to fund capital expenditure on long-lead drilling equipment and general costs until 2010-11.
The Aim-listed oil and gas explorer, which has licences to the south and east of the Falkland Islands, said it issued about 10.4million new shares to certain directors and institutional investors at 73p each, representing a 19% discount to the closing price of 90p on Tuesday. The placing shares represent about 11.3% of FOG’s enlarged share capital.
Meanwhile, Scottish oil and gas operator Cairn Energy, has said it is one of nine companies selected to bid for oil exploration acreage in Iraq in the Middle East country’s second licensing round.
Oil giants, BP, Shell and Total were among 35 companies chosen earlier this year to bid for acreage in a first licensing round.
The Scottish company believes its exploration record in north-west India gives it a good chance of success in similar deserts in Iraq.