Beacon Energy raises £4.3m in share placing

Shares in Beacon Energy dropped on Friday after the Germany-focused oil and gas group raised £4.3m in an oversubscribed fundraising to support its the development of a well in its Erfelden oilfield.

The company issued 2.67bn placing shares and 200m PrimaryBid shares, taking its total ordinary shares in issue to 13.37bn.

"We are delighted to have received such strong support in this process from both existing and new investors," said chief executive Larry Bottomley.

The funds will provide additional working capital to support bringing Erfelden's Schwarzbach-2(2.) well, located in the most northern oil field in the Upper Rhine Graben, into commercial production.

"We would like to thank our new and existing investors for their support and look forward to providing further updates on our operational progress in due course."

The stock was down nearly 8% to 0.17p in morning trade.