Deltic Energy is raising up to £17mln in a placing and separate open offer to fund the Selene well and licences offered in the latest North Sea round.
Selene is being drilled in partnership with Shell, which committed to the well in July, and contains an estimated 318 billion cubic feet (bcf) of gas on a P50 basis, worth an estimated US$624mln.
Deltic has a 50% working interest in the North Sea field.
Another gas joint venture with Shell in the North Sea, Pensacola, is due to spud next month, but Deltic has already said that well is fully funded.
PM Liz Truss, meanwhile, has just announced that 130 new North Sea licences would be issued to help bolster the UK’s energy supplies in the wake of the Ukraine war.
The placing is being run as book building exercise at 3.5p per share to raise £15mln with up to another £2mln to come from an open offer at the same price.
Deltic’s largest shareholders, IPGL Limited and related individuals and Inthallo both intend to participate in the fundraising. said the statement.
"This is a very exciting time for Deltic as we will shortly be drilling of our Pensacola gas prospect and continue to progress, and add to, our conveyor belt of opportunities, not least our Selene gas prospect, which we look forward to commencing drilling within the next 12-18 months," Graham Swindells, Deltic Energy CEO said.
“Given the tragic events in Ukraine, the importance of having a secure supply of domestic gas from the UKCS has never been more evident.”