Baron Oil PLC on Thursday said it has raised £3 million through a placing, subscription and retail offer.

Baron Oil said it has raised £2.7 million through an oversubscribed placing and subscription of 6.00 billion shares priced at 0.025p each.

In addition to the placing and subscription, it has raised £300,000 through a retail offer.

Baron Oil said the proceeds will be used to support its share of expenditure on the TL-SO-19-16 production sharing contract, offshore the Democratic Republic of Timor-Leste in the first half of 2024.

Chief Executive Andy Yeo said: ‘This funding, in conjunction with our existing available cash, will allow us to push on with the preparations for the drilling of the Chuditch-2 appraisal well planned for Q4 2024. These preparations will also include progressing drill financing. In a drilling success case, we expect to be able to validate a significant resource to create real value for shareholders.’

Copyright 2024 Alliance News Ltd. All Rights Reserved.