Jersey Oil & Gas intends to raise £20m through a placing of shares at a minimum price of 200p apiece and up to £4m through a subscription offer.
It said the proceeds would be used to fund the expected Verbier appraisal programme and Cortina exploration drilling, following the recent oil discovery in the Verbier side-track well, 20/05b-13Z.
The proceeds would also be used to strengthen the company's balance sheet as it continued to pursue its production focused acquisition strategy in the UKCS.
Chief executive Andrew Benitz said: 'Jersey Oil & Gas is in a unique position with an 18 per cent. interest in Licence P.2170 containing the Verbier oil discovery which Statoil, the operator, initially estimates has gross recoverable resources of between 25 and 130MMboe, with a minimum proven recoverable volume in the immediate vicinity of the wellbore of 25 MMboe.
'Evaluation of the well results alongside the existing 3D seismic data is ongoing and today's placing ensures that we are able to fund our working interest in this highly attractive licence once the appraisal drilling programme is confirmed by the operator.
'Alongside this we have a strong pipeline of asset opportunities and are encouraged by the active deal flow in the North Sea.
'The additional funds will allow us to maintain our balance sheet strength as we continue to pursue a production-led acquisition strategy within the UKCS.'
At 8:06am: (LON:JOG) Jersey Oil And Gas Plc share price was -30.5p at 223.5p