Hurricane Energy raise £52m in placing

Oil and gas explorer Hurricane Energy said it had raised £52.1m through a share placing in a deal that will see private equity firm Kerogen Capital help finance drilling at two wells on the Lancaster field in England's north-west.

Hurricane also reported a narrowing of its full year pre-tax losses to £5.5m from £9m. Operating expenses fell by 37% to £5.4m. It has not generated any revenue.

The company's main focus is on hydrocarbon resources in naturally fractured basement reservoirs.

The placing involved the issue of 347.2m shares at 15p each. Kerogen has subscribed for 293.9m. Hurricane also issued 23.3m warrants exercisable at 20p each to activist fund Crystal Amber.

"The successful completion of these two operations will enable us to advance the development of one of the UK's largest yet to be developed fields. To be able to progress to this point, whilst retaining a 100% interest in all our assets, is a tremendous accomplishment and can only aid our continuing farm-out discussions which are progressing well," said chief executive Robert Trice.

Hurricane shares were up 22% to 12.50p at 1230 BST.