Hurricane draws £70m for investments

By Robert Venes

Oct (HKSE: 3366-OL.HK - news) 21 (IFR) - Hurricane Energy (Other OTC: HRCXF - news) , an oil and gas business focused on tapping resources in naturally fractured basement reservoirs, has raised £70m from a placing, with potential for a further £4.4m coming from an open offer.

The placing comprised 205.88m shares, representing 17.12% of the existing capital, at 34p, a 12.26% discount to Wednesday's close of 38.75p and an 11.13% discount to the 30 trading day VWAP of 38.26p.

Shareholders Kerogen Investor and Crystal Amber conditionally subscribed for 93m shares, or £31.63m. Kerogen will not subscribe for any shares in the open offer, which will be done on a 1-for-76 basis. The placing went to both existing shareholders and new investors.

The open offer runs from October 21 through to November 7, when shareholders will vote on the transaction at an EGM.

Proceeds will be put towards existing projects.

Cenkos and Macquarie Capital are joint bookrunners. (This story will appear in the October 22 issue of IFR magazine; Reporting by Robert Venes)