Southern Energy Corp on Thursday said it had raised £4.1 million in a placing of 26.6 million shares at 15.5 pence.

Shares in the Calgary, Canada-based natural gas exploration and production company plummeted by 16% to 15.50 pence each in London on Thursday around midday.

Southern Energy’s said the placing is a 16% discount to Wednesday’s closing price, adding that the funds will be used for the completion of four drilled and uncompleted wells, which will cost around $3 million each.

Commenting on the fundraise, Chief Executive Officer Ian Atkinson said: ‘I am pleased to announce the successful fundraising today that will allow us to accelerate the completion of Southern’s four drilled and uncompleted wells in Gwinville in an increasingly positive macro gas price environment. The accelerated completion of the four wells is anticipated to provide significant production growth and cash flow to the business, and we look forward to getting to work to bring these wells on to production.’

This comes after Southern Energy announced on Wednesday its plans to raise the £4.1 million.

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