Oil and gas explorer, Circle Oil (AIM: COP) secured an important cash injection of £33 million on Friday, which will help it to develop its projects in Morocco, Tunisia and Egypt.The AIM-quoted company offered 173.7m new ordinary shares at a price of 19p each, though throughout the whole August shares have been trading at 20p or higher.
Libya Oil Holdings, gave £19m acquiring a 29.66% stake, and Kaupthing Bank, which spent £10m on a 15.61% stake, have been the major participants.
Circle and Libya Oil Holdings have further agreed to explore possible areas of future cooperation on projects in Circle's current areas of interest.
Circle said that money will be used to enhance the development programme in Morocco, Tunisia and Egypt. The company plans to drill nearly 15 wells in these areas before the end of this year.
David Hough, CEO of Circle, said: "I am absolutely delighted that Circle has been able to raise such significant new investment in the Company, particularly from investors of this calibre, in what remain very tough financial market conditions."
Up for the new highs?
Circle Oil has recently had a fantastic ride since August. The stock price has jumped from just over 20p to 27p as of Friday. Providing the company will continue its work on its projects in Africa, we could see the stock rushing to the new highs.
The company has planned some aggressive exploration drilling programme, which unquestionably will bring returns at some point.
Reference
http://www.circleoil.net/05September20082.htm
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