Prospex Oil and Gas raises £1.2m in placing

AIM-listed Prospex Oil and Gas has raised £1.2m in an oversubscribed placing of 200m shares, which will ensure the group is fully funded for its basic 2018 work programmes across its portfolio of investments in late stage European onshore oil and gas projects.

This year will include flow testing of the Podere Maiar well in the Po Valley region of Italy in the first quarter, the likely commencement of production at the Bainet gas discovery on the Suceava concession in Romania in the second quarter and work to further delineate a gas discovery at the Tesorillo Project in southern Spain.

Non-executive chairman Bill Smith said: "The funds raised today enable us to build on the success we enjoyed in 2017. This saw us acquire material interests in three European onshore projects, participate in the drilling of three wells, and by the end of the year make two gas discoveries. From the outset, our objective has been to consistently provide our shareholders with exposure to multiple value trigger events. With flow testing of our gas discovery in Italy expected to commence shortly, followed by first gas production from the Bainet discovery in Romania, H1 2018 will not be short of high impact newsflow.

"In tandem with this, we are actively working to add to our portfolio and, where we can, accelerate the exploitation of additional opportunities identified within our existing investments. The year ahead promises to be an exciting one for Prospex. I look forward to providing updates on our progress, as we look to maintain the strong momentum behind the company."

At 1420 GMT, the shares were down 13% to 0.61p.