Nighthawk raises more cash

US-focused oil firm Nighthawk said it had raised around £2.9m by selling more new shares to investors.

The 115.7m new shares, which have been placed with institutional and other investors at 2.5p per share, come at a discount of 7.4% to the closing share price yesterday.

The sale is part of a wider fundraising effort as Nighthawk works on a deal to buy a 25% interest in Running Fox's Jolly Ranch oil field for an initial price of $12.5m.

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The deal would make Nighthawk operator of the Jolly Ranch Project, where it plans a $7m work program starting in the second quarter of 2012 with work-overs of existing wells followed by up to five new wells.

In October the company raised around £1.97m through the placing of 78,892,000 new ordinary shares at 2.5p per share.

Today's news pushed shares down almost 4% in early trading.