IGas proposes placing 24 million new shares with investors

AIM-listed exploration and production company IGas is proposing placing up to 24.3 million new ordinary shares with new and existing institutional investors to facilitate investment in IGas's shale resource.

The shares, which would be at a price of 95p per placing share, represent approximately 15% of the company's existing issued share capital.

The placing is being conducted through an accelerated book-building process to be carried out by Jeffries International and Canaccord Genuity, who are acting as joint bookrunners in connection with the placing.

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The announcement follows recent developments in the UK with the lifting of restrictions on exploration for shale gas announced by the UK Government on December 13th and the establishment of the Office for Unconventional Gas and Oil.

IGas' shares were down 7.59% to 106.50p at 10:33 on Tuesday morning.

MF