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Sound Energy unveils plans to raise £24mln

Thursday, November 24, 2016 1:09
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(Before It's News)

On the back of some quite eye-popping flow rates from its first horizontal well on the Tendrara licence and backed by its success to date in Morocco, Sound Energy PLC has unveiled plans to raise just over £24mln.

The cash will be used to carry on drilling what is shaping up to be one of the major onshore gas discoveries of the past few years, which analysts believe has super-giant potential.

READ: Morocco flow rates exceed hopes

Sound is offering shares in two tranches and is using the PrimaryBid platform for private investors who have less than €100,000 to stake on the company’s success.

This will allow them to get involved in the fundraiser alongside the institutions.

Usually at this stage, when businesses of Sound’s ilk start raising large slugs of cash, the ordinary punter is locked out.

However chief executive James Parsons sees them as having been instrumental in the firm’s success to date, providing significant financial backing in their own right.

“Sound Energy values its private investor base and has chosen this structure to enable the introduction of institutions to the register whilst also re-affirming our commitment to treat private investors fairly,” Parsons said.

On another note, it is interesting to see the pricing of the issue of new paper, which at 81p a share is a modest 1.25p discount to last night’s close.

This suggests that demand is strong for stock in Sound. Companies in the oil and gas sector in the current depressed environment for the sector have been forced to take major haircuts to bring in new funds.

 

Story by ProactiveInvestors

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