Orcadian raises £0.35m for proposed farm-in deals

(Sharecast News) - Orcadian Energy announced the raising of £0.35m on Monday to help fund the expenses of its proposed farm-in agreements. The AIM-traded firm said it issued 2,916,666 new shares priced at 12p each through a direct subscription agreement with new investors.

It noted that the subscription price reflected a 14% discount from the closing mid-price of an ordinary share on 29 September.

The board said the newly-raised funds were earmarked for ongoing working capital, covering expenses related to the proposed farm-in agreements, which were initially announced on 18 September, and to settle debts with select creditors.

However, Orcadian Energy also indicated that additional funds would be required soon to support its continued operations.

"We are delighted to welcome our new investors on board," said chief executive officer Steve Brown.

"Though more funding was made available to the Company from other groups, we are continuing to minimise company overheads whilst seeking to add value per share.

"As a company, we also remain very cognisant of keeping shareholder dilution to a minimum."

Brown said the funds would enable the firm to progress the announced proposed farm-in deal, as well as help unlock the inherent value it believed was in the company for shareholders.

"We look forward to providing updates on the proposed farm-in to the Pilot Project and the outcome of our applications in the 33rd Offshore Licensing Round."

At 1442 BST, shares in Orcadian Energy were up 7.07% at 14.99p.

Reporting by Josh White for Sharecast.com.