(MENAFN- ProactiveInvestors - UK) Cluff Natural Resources PLC (LON:CLNR) has raised 727000 through a placing of new shares to new and existing institutional and private investors.
The group which is focussed on North Sea projects said the injection of capital will fund the company through to the end of 2016.
It will issue some 58mln new shares at a price of 1.25p each though it will be split across two tranches (of 14.9mln and 43.25mln shares respectively) with the second tranche requiring shareholder approval.
Proceeds are also earmarked to support further geological and technical work to enhance its portfolio of Southern North Sea gas licences as well as efforts to secure a partner that will help fund planned exploration and appraisal drilling operations.
"The funds raised will allow us to continue to unlock the potential value of our growing portfolio of oil and gas assets' said chief executive and chairman Algy Cluff.
Cluff added that the company also intends to identify opportunities to capitalise on current market conditions.
It recently agreed initial terms for such a deal which may see it acquire a 25% stake in three licences in the Central North Sea and the Moray Firth. That acquisition is current conditional upon agreement of binding terms as well as other conditions.
'This acquisition complements our existing portfolio of five licences in the Southern North Sea which have a prospective resource of 845 BCF which we are developing in collaboration with Halliburton one of the world's largest providers of products and services to the energy industry.
'I look forward to providing further updates in due course as we continue to source potential partners with a view to drilling exploration and appraisal wells.'
He highlighted that the new assets are effectively 'drill ready' and have been estimated by the project's operator to contain some 400mln barrels of recoverable oil.
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