Clontarf Energy raises €460,000 as losses widen

Irish-based exploration firm Clontarf Energy has raised £400,000 (€464,000) via the placing of 80m ordinary shares with new and existing investors.

The new shares represent nearly 15% of the AIM-listed company’s enlarged issued share capital.

The proceeds will provide Clontarf with additional working capital and fund any costs — including legal and nominated advisor fees — associated with its ongoing negotiations regarding its assets in Ghana.

The John Teeling-chaired company — along with sister company Petrel Resources – announced on Monday that it has accepted, “in principle”, revised acreage co-ordinates at its Tano Basin assets in the African country, but warned that agreement has yet to be reached on certain matters and no assurances can be given on a successful outcome.

The dispute arose when another firm was awarded acreage overlapping the Clontarf/Petrel licences, thus diluting their asset base.

Clontarf also, yesterday, released annual figures for the first half of 2016, showing a near 12% rise in interim pre-tax losses to £96,000.

“Clontarf operates in a challenging market environment for explorers, though we are making progress in both Ghana and Peru,” said Mr Teeling, who added that, after the equity raise, Clontarf has “adequate funding for current activities”.

He also confirmed that the company continues to consider new projects and new areas for exploration in a bid to boost shareholder value.