Edinburgh To Raise Capital for Buzzard Development Work

Edinburgh Oil & Gas plans to raise GBP 5.8 million through a share placement, primarily to fund ongoing appraisal and pre-development work on the Buzzard Field located in the UK Sector of the North Sea. The company also plans to use money raised to fund an exploration well on the northern half of UK offshore Block 20/1, planned for the second half of 2002 and to develop its key onshore assets, including the coal mine methane project in North Staffordshire in 2002.

Under the terms of the offer, 4,605,766 new ordinary shares are being conditionally placed with institutional and other investors at 135p per share, subject to clawback by qualifying shareholders who are invited to apply for the new shares, at the placing price, by way of the open offer.