African energy firm Ophir said it wants to raise up to 7.6 million pounds to help finance its expanding drilling programme.
The firm said it would offer up to 30.5m new ordinary shares of 0.25 pence each, which help it to maintain its equity position in its successful Tanzania sites.
On Monday the firm said it had made a 4.5tr cubic feet gas discovery at its Jodari-1 well in the area, exceeding pre-drill estimates by 55%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Ophir's East African acreage is characterised by relatively high net equity stakes for a mid-cap independent," said Chief Executive Nick Cooper.
"It will allow Ophir to maintain its current equity position in the Block 1, 3, 4 JV with BG while we continue to investigate the world-class potential of this asset base."
"The proceeds from this placing will be used to finance a significant portion of our expanded 2012-2013 African exploration programme," he added.
The company said it was on course to drill nine wells in 2012 and up to thirteen in 2013, across Tanzania, Kenya, Gabon, Equatorial Guinea and Madagascar.
