Shares in UK Oil & Gas Investments, the company behind the so-called Gatwick Gusher, slumped today after the announcement of a successful fundraising round.
The Aim-listed firm announced today that it had raised £4m by placing 266,666,667 new shares at 1.5p each. Its shares closed down 10.8 per cent to 1.69p per share this afternoon.
The cash will be used to further its existing Weald Basin portfolio activities, potential investment into its new Weald Basin and Southern UK onshore oil and gas activities, and general corporate purposes.
When a company increases the number of its shares on offer, this can change voting control, earnings per share as well as value for individual shareholders.
Ukog was forced to issue a "clarification" last year after announcing that test results showed one of its sites could hold up to 100bn barrels of oil. Since then, investors have been on a roller coaster, with a series of updates sending shares yo-yo-ing.
Most recently, the Ukog increased its stake by buying another company's investment in the Horse Hill well development.