MELROSE Resources, the Aberdeen-based oil independent, yesterday placed seven million new shares in the company to fund oil drilling projects in Egypt, Texas and Bulgaria.
The shares were priced at 385p each, and raised £26.5m net of expenses.
Melrose chairman Robert Adair and Caledonia Investments participated in the placing, subscribing to 3.6 million and 621,000 shares respectively, giving Adair a 51.8% share of the group, and Caledonia Investments 8.9%.
The placing shares, which will rank pari passu in all respects with the company's existing ordinary shares, represent approximately 6.8% of the current issued share capital of the company.
The placing is conditional, inter alia, upon admission to the official list of the UK Listing Authority, and dealings in the placing shares to should commence at 8am on March 9, 2007.
The placing comes a week after Melrose announced its appraisal well on the West Dikirnis field in Egypt had proved the presence of a good oil reservoir and confirmed the extension of the field to the north.
In the US, it had reported identifying several leads and prospects on territory in Texas acquired when the company bought Merlon Petroleum last April.
The shares in Melrose closed up 11.25p at 417.5p after the news, but yesterday they closed down 22p at 399p.
Adair said: "We are pleased that our major institutional shareholders have supported this fundraising, which will provide us with additional flexibility in our financing arrangements during this exciting time in the company's development."
l Abbot Group, the inter-national oil and gas services business, announced yesterday that its subsidiary, KCA Deutag, has been awarded a 36-month contract by CNR International for the jack-up drilling rig Ben Avon to work in the Olowi field, offshore Gabon.
The contract, which starts between April 1, 2008 and June 30, 2008, is valued at in excess of $170m.
KCA Deutag currently has two land rigs on con- tract to Addax Petroleum in Gabon.
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