The net proceeds from the issue of new shares, together with FOGL’s existing cash resources, will be used to fund a two-well drilling program.
FOGL, which operates in the south and east Falkland basins, said the net proceeds will provide the financing to drill a deep well on Loligo and a well on Scotia.
FOGL chief executive Tim Bushell said the additional funds will significantly increase the company’s flexibility over the forthcoming drilling program expected to begin in early May with the drilling of Loligo.
While the placing provides FOGL with the funds to drill the two wells, the company intends to progress the on-going farm-out discussions with interested parties, as participation by a farminee could provide additional drilling funds.
