PetroNeft Resources will raise $27.5m to fund field development at a Russian oil field, the company has announced.
The company will raise the money through the conditional placing of 120,640,209 new ordinary shares at £0.14 ($0.23) for every ordinary share.
The proceeds will fund PetroNeft's field development programme at its Russia-based licence 61 project, which is aiming to commence commercial oil output in the third quarter of 2010.
The initial phase of the programme involves developing the Lineynoye oil fields, with nine new production wells proposed for next year to match the two existing wells, development of a 70km pipeline and related field infrastructure.
The company has already acquired more than 90% of the required pipe, which has been stored at a river port north of licence 61.
This pipe will be used to develop a new export pipeline to the Imperial Energy facilities located at the Kiev-Eganskoye field in 2009/10.
In January next year mobilisation of field facilities and a production drilling rig is likely to begin and development drilling is sceduled to start in April 2010.
Oil output is expected to begin in the third quarter and reach nearly 4,000 barrels of oil per day (bpd) by the end of next year. Peak output from the development programme's initial phase is expected to touch 12,000bpd in 2012.