Doriemus seeking to raise £0.9m in open offer

UK-focused oil and gas exploration and production investment company Doriemus announced the launch of a three-for-10 open offer on Tuesday, to raise up to £0.87m before expenses.

The AIM-traded firm said that under the offer, qualifying shareholders are being offered the opportunity to subscribe for up to 2,471,999,999 shares at a price of £0.00035 each, representing a discount of around 22% to the closing mid-price per share on 5 September.

Doriemus said it is seeking to raise money to strengthen its balance sheet to ensure it has sufficient funds to pay for any unexpected cost overruns in the upcoming Brockham drilling and testing programme, future cash calls relating to its share of the ongoing work at Horse Hill, to ensure it has sufficient funds available to pay for its share of preparatory work at the Lidsey oil field for a new well conceptually planned for early 2017 and for its share of any unexpected costs associated with the new Isle of Wight licence.

The Open Offer Shares will represent 23.08% of the company’s enlarged share capital immediately following completion, assuming the Open Offer Shares are taken up in full.

“Doriemus has a number of very exciting oil projects on the horizon, with the up and coming Brockham side-track designed to test the Portland and Kimmeridge limestones only 4.5 miles from the Horse Hill oil discovery, the potential of a new well at Lidsey early next year, the long awaited extended flow testing work at Horse Hill and we are continually assessing further acquisitions in the UK oil and gas space,” said executive chairman David Lenigas.

“All of the directors will be taking up their entitlement to this offer and we are pleased to offer all shareholders the opportunity to do the same.”