Thursday 13 October 2016 12:16 pm

Enquest to raise £82m as part of a financial restructuring

One of the UK's largest independent oil gas producers in the North Sea said today that it wants to raise £82m through a rights issue as part of a proposed restructuring.

The struggling firm Enquest announced its intention to offer more than 356.7m new shares at 23p each following the conclusion of an "extensive period of engagement and negotiation" with its lenders.

Read more: EnQuest's share price jumps despite losses more than doubling

The deal will help Enquest shore up its balance sheet and enable it to continue developing its Kraken oil field which is one of the biggest projects in the North Sea.

Its shares fell as much 5.5 per cent to 25.75p per share in early morning trading, before settling at around 27.25p.

The company has struggled amid the commodity price crash which has heaped pressure onto the finances of oil and gas explorers.

Read more: Enquest plans stake sale in North Sea project to Israeli billionaire's Delek

Jock Lennox, chairman of Enquest, said that the company "has taken action to implement extensive cost savings programmes to refocus the business for the low oil price environment.

"The board remains confident in the long-term potential of the EnQuest business plan, and is of the view that the proposed restructuring … will enhance value for all stakeholders."