Chariot to raise £90m to fund Namibia exploration

IOT

IOT Oil & Gas said yesterday it expects to raise about £90m through a discounted share placing to help fund its exploration programme as it plans to drill its first well in offshore Namibia in late 2011.

The Africa-focused oil and gas exploration company said yesterday it has placed about 36m shares at 25p each, an 18 per cent discount to the stock’s Friday close.

“The funds will enable Chariot to participate in a minimum of two wells and conduct a further 5,000 square kilometres 3D seismic programme across areas of specific interest in the central blocks,” the company said in a statement.

In July of last year, Chariot had said it expected to start production in 2013-14 after drilling its first well in offshore Namibia in 2011.

Chariot Oil shares, which have risen 32 per cent since a resources update in January, lost 11.6 per cent to close at 270.5p yesterday.