Shareholders slow to invest in President Energy’s fundraising

President Energy fell short of its maximum fundraising limit today, managing to find commitments from shareholders to buy £3.5m worth of new stock.

The oil and gas explorer said it was still able to push on with its plans, as it looked to accelerate the expansion programme in Argentina’s Rio Negro province.

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President said last month it could raise up to £6.5m to fast track the development of its gas assets in the region, which make up 19 per cent of the company’s reserves, but only three per cent of production.

Chairman Peter Levine, who is also the company’s biggest shareholder, bought 6.25m of the offer’s nearly 44m shares, valued at around £500,000. It keeps his holding in the company stable at 29.95 per cent.

Shares fell 1.86 per cent to 7.9p.

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“The drive for accelerated gas production has already commenced and we look forward to updating the market on this, as well as in respect of all aspects of our growing business, in due course as we move into an era of being a balanced energy business,” Levine said.

“Accordingly, we view the future with increasing confidence and are determined in our objective that President will continue to be an increasingly successful, profitable, cash positive and professionally managed business fulfilling and exploiting the excellent prospects for growth, both organically from its current assets as well as by acquisition.”