DNO International ASA, the first foreign company to pump oil in Iraq since the 1970s, has raised 360 million Norwegian kroner ($60 million) to fund exploration drilling and license acquisitions.
DNO sold 45 million shares at 8 kroner each, a 5.8 percent discount from the previous closing price. The offering was oversubscribed, the company said.
“Through this placement we are providing sufficient cash for exploration and appraisal drilling beyond the previously communicated investment plans,” Chief Executive Director Helge Eide said in the statement.
“Additionally, the placement further strengthens the balance sheet, allowing us also to actively seek new license entries going forward.”
DNO has pumped oil in Iraq’s Kurdish region since 2007 and in June 2009 started exports through Turkey until shipments halted in September of that year due to a dispute over payments to foreign companies between the Kurdish authorities and Baghdad.
The company is still awaiting permission to resume exports. It has said it is seeking opportunities to expand in north and east Africa, as well as the Middle East.
DNO's chairman and communications director have both announced that they have purchased additional shares in the company.
(Sources: DNO, Bloomberg)