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(Sharecast News) - Corcel announced on Tuesday that it has raised £2.72m through an equity placing at a 6.7% premium to the prior day's closing price, with the proceeds set to support operational activities in Angola and Brazil, as well as efforts to expand its interests in the Kwanza Basin, onshore Angola.
The AIM-traded firm said the fundraising, completed at a price of 0.16p per share, involved the issue of 1.7 billion new ordinary shares to strategic investors with significant oil and gas sector experience.
Investors also received one warrant per placing share, exercisable at 0.225p apiece within 24 months.
An acceleration clause would allow Corcel to require warrant exercise if the share price met a specified threshold for 25 consecutive trading days.
The board said funds would be directed towards advancing the company's operations, including obtaining new 2D seismic data for its Angolan assets later in 2025.
It said it also issued 16.2 million shares to its broker, Auctus Advisors, as part of the fundraising arrangement.
Following the admission of the new shares to AIM, expected on 24 February, Corcel's total issued share capital would rise to 5.56 billion shares.
"This capital injection strengthens Corcel's financial position and balance sheet, enabling us to accelerate progress on our key projects with confidence," said chief executive officer Scott Gilbert.
"We are focused on delivering near-term catalysts that will drive significant value for our shareholders.
"The onshore Kwanza Basin in Angola is rapidly emerging as a highly sought-after region for energy companies worldwide."
Gilbert said that as the first London-listed independent exploration & production company to enter the onshore Kwanza Basin, the firm was "excited" about Corcel's future in the region, the benefits its first mover advantage would bring, and the opportunities in an area it believed had the potential to add significant material value to the business.
"With a clear strategy in place, the support of our shareholders and an extensive runway, we look forward to increasing our interest in the basin, conducting extensive subsurface studies on our core assets, and advancing preparations for the upcoming seismic program later this year.
"At the same time, we remain committed to delivering on our broader business plan across Angola and Brazil."
At 1400 GMT, shares in Corcel were up 4.67% at 0.16p.
Reporting by Josh White for Sharecast.com.
