Chariot Oil & Gas raises £11.7mln in share placing to accelerate growth

Chariot Oil & Gas Ltd (LON:CHAR) has raised £11.7mln of new capital to fund an appraisal well at the Anchois Gas Development offshore Morocco.

Funds will also support work in the acreage surrounding the Anchois discovery, to set up the additional resources for development in the future.

Significantly, the injection will also support its ‘transitional power’ unit which is focussing on renewable energy opportunities in Africa. Here, the cash helps with the integration of the team along with cash to fund near term projects.

Some 212.5mln new shares were sold in a placing at a price of 5.5p. A further £3.5mln raise will now be pursued through an open offer to qualifying existing shareholders – who will be entitled to buy 1 new share for every 6 shares they own.

The fundraising effort is being underwritten by Magna Capital, of which Chariot’s acting chief executive Adonis Pouroulis is a substantial shareholder, to ensure that £16.3mln of total funding is secured for the company.

“This successful fundraise marks a key turning point in the evolution of the company, as we seek to build a transitional energy business in Africa, that we believe will deliver value for all stakeholders.

“With the net proceeds, Chariot intends to accelerate the timeline of the Anchois Gas Development coming online, with a near-term appraisal well now in sight and the launch of Chariot’s Transitional Power division, following the acquisition of AEMP earlier in the year in partnership with Total Eren.”

He added: “This fundraise will turbocharge our growth ambitions in both our transitional gas and transitional power businesses which are highly scalable in terms of both the prospective gas resources offered in Anchois and surrounding area, and in the pipeline of projects to provide clean power to mining and industrial clients in Africa.”

Story by ProactiveInvestors