Latin America-focused oil and gas company Gold Oil has returned from suspension having raised £2.09m at 0.75p a share – a huge discount to the suspension price.
The Gold Oil share price almost halved on the back of this placing, which was done as a cashbox placing so that shareholder approval was not required. At 1.54p a share, down 1.44p, Gold Oil is valued at £13.7m.
The cash is required to pay creditors and to develop the company’s interest in the Nancy-Burdine field in Colombia. Gold Oil wants to increase its stake in the field from 60% to 81.6%. The company is talking to potential partners for Block Z-34 in Peru.
William Colvin is joining the board as a non-executive director. Colvin has the same role at Energy XXI and InfraStrata.
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