Encore Placing of Shares to Bolster Drilling Program
EnCore Oil is placing 34,722,223 new ordinary shares of 5p each at a price of 36p per share to raise approximately £12.5 million (before expenses).
The Placing has been undertaken to provide additional capital for the Company’s active exploration and development program and to fund the £2-3 million which the Directors anticipate will be transferred into the new quoted company which will hold EnCore’s gas storage assets on completion of the proposed demerger.
On completion of the Placing, the Company will have cash reserves of approximately £23 million.
Following the Placing, there will be 305,974,175 ordinary shares of 5p each in issue. Application has been made for the admission of the Placing Shares to AIM, which is expected to take place on 20 Dec. 2007.
"We are delighted to receive this support from both existing and new institutional shareholders," said CEO Alan Booth. "The new funds will be used for the development of our already active drilling program planned over the next 18 months as well as to provide capital for our gas storage business which is scheduled to be demerged in the first quarter of 2008."
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