Beacon Energy PLC on Friday said it completed an oversubscribed placing and PrimaryBid offer which raised an aggregate of £4.3 million.

The Germany-focused upstream oil & gas company said that this was via the issue of 2.67 billion placing shares and 200.0 million PrimaryBid shares at the issue price of 0.15 pence per share.

Shares in Beacon Energy were down 9.0% to 0.16p each in London on Friday morning.

This followed the company’s announcement on Thursday which detailed its intention to raise £4 million at the placing and undisclosed ‘additional funds’ via the PrimaryBid offer.

Beacon Energy said the issue price represented a 17% discount to the closing middle market price of 0.18p on Thursday.

‘We are delighted to have received such strong support in this process from both existing and new investors. The fundraise was significantly oversubscribed, bringing a number of new high quality institutional investors onto the shareholder register - a testament to the quality of the company’s asset base and the scope for material value creation,’ said Chief Executive Officer Larry Bottomley on Friday.

‘The fundraise provides welcome additional working capital to support bringing the SCHB-2(2.) well into commercial production. We would like to thank our new and existing investors for their support and look forward to providing further updates on our operational progress in due course.’

Beacon Energy shares plummeted 22% at 0.21 pence in London on Monday morning, despite ‘excellent’ well findings.

It said it could achieve high rates of production from its Schwarzbach-2(2.) well thanks to recently-discovered oil-bearing reservoirs, despite repeated programme delays.

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