EnQuest to Raise up to GBP36.1 Million to Fund Golden Eagle Oil Fields Stake Buy

By Ian Walker

EnQuest PLC said Wednesday that it plans to raise up to 36.1 million pounds ($50 million) to fund its acquisition of a 26.69% stake in the Golden Eagle oil fields, offshore U.K., as announced in February.

The oil-and-gas company said it is issuing 190.1 million new ordinary shares via a firm placing, placing and an open offer at 19 pence each. The issue price is an 8.7% discount to EnQuest's closing price of 20.80 pence on Tuesday.

Under the fundraising, shareholders can buy up to 95.3 million of the discounted shares via the open offer on the basis of five new shares for every 89 held.

The fundraising is partly conditional upon shareholders approving the acquisition of the Golden Eagle oil fields stake.

On Feb. 4 EnQuest said it was buying a 26.69% stake in the Golden Eagle oil fields from Suncor Energy UK Ltd. for $325 million, funded by a new loan, cash flows and an equity raise of up to $50 million.

EnQuest said at the time that the acquisition increases its daily production by around 10,000 barrels of oil equivalent, with operating costs of around $5 per barrel, and expands its net oil resources by around 5 million barrels.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

June 30, 2021 03:20 ET (07:20 GMT)

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