15 Nov President Energy seeking $20 million raise
Oil and gas explorer President Energy (AIM:PPC) is seeking to raise US$20 million through a share issue, the company announced today.
The company said it will use half the money to fund a 10-well workover programme in Argentina while the other half will go towards strengthening President’s balance sheet to enable the pursuit of inorganic growth.
The London-listed junior is a South American-focused firm with significant exploration and development potential in Paraguay and production assets in Argentina.
“This is an important moment for President Energy, marking a new chapter for the company with a clear focus on rapidly building shareholder value founded on low geological risk production growth, high marginal value barrels in country and the opportunity to take advantage of regional opportunities that will be available to early movers with local knowledge and relationships,” said President Energy chairman Peter Levine.
“Today’s proposed fundraising, together with the proposed loan restructuring, allows President to increase production through a concentrated workover programme, strengthen the group balance sheet, provide critical mass and enable pursuit of additional internal and inorganic growth opportunities.”
Peel Hunt is the nominated advisor for President Energy, as well as operating as joint bookrunner on the raise alongside BMO Capital Markets Limited.