PetroNeft raises $43m from shares

Irish oil and gas company PetroNeft Resources said today it had raised $43 million from a “substantially oversubscribed” share placing.

Terms have been agreed for the conditional placing of 63,125,000 new ordinary shares, executed in two tranches.

The company said the proceeds would be used to fund an accelerated exploration programme at its licence blocks in Tomsk, in Western Siberia, and for new business development opportunities.

“We are delighted with the outcome of the placing and the very high level of support received from both new and existing shareholders,” chief executive Dennis Francis said.

“The combination of year-round oil production and the continued development and exploration of Licences 61 and 67, provides an excellent base from which we can generate significant cash flow, target significant 2P reserve growth and take advantage of exciting potential acquisition and new venture opportunities in the Tomsk region.”

PetroNeft this morning said it was on course to achieve production of 4,000 barrels per day by December, and plans to treble this by the end of 2012.