Oil and gas exploration outfit Bahamas Petroleum has raised $2.54m before expenses by virtue of a firm placing of 120m new ordinary shares at a price of 1.6p each.
The shares had closed the previous session at 2.48p but, apart from recent spikes, had been trading below 2p for most of the past three and a half years.
Bahamas will use the proceeds of the placing to fund operations as it seeks to lock in a farm-in partner to help finance an initial exploration well at its four southern licences in The Bahamas.
The AIM-listed explorer, which revealed that it was already engaged in ongoing discussions with potential partners, told investors on Friday that it was “confident” that it would be successful in attracting a partner now that its licenses in the area had been extended through to the end of 2020.
Bahamas' board also stated that the proceeds of the placing, together with its existing financial resources, would provide it with sufficient working capital for its currently anticipated requirements for at least the next 12 months.
Chief executive Simon Potter said: “Our focus at Bahamas Petroleum remains clear and unwavering: to drill an initial exploration well on our highly prospective acreage in The Bahamas.
“With today's placing, we have secured the funds needed as we continue to seek a farm-out agreement, and thereafter move forward to drilling of the initial exploration well and realising the offshore potential in The Bahamas.”
As of 1020 GMT, Bahamas shares had sunk 30.94% to 1.76p.