North Sea-focused Trap Oil, an oil and gas exploration and appraisal company focused on the UK Continental Shelf, has raised £4.3 million through a placing on AIM.

According to the company, the proceeds of the placing will be used to augment the ‘anticipated’ cash flows arising from its acquisition of Athena, and to assist with the funding of potential commitments in relation to the proposed purchase of the Trent East Interest.

In March, Trap Oil bought a 15 per cent stake in the Athena development from Dyas for £34.5 million. Athena is operated by Ithaca Energy.

Furthermore the capital will allow for additional drilling opportunities and provide general working capital for the company.

Mark Groves Gidney, CEO of Trap Oil, comments, ‘We are pleased with the interest and support received from both existing and new investors in Trap Oil in very difficult market conditions.

‘The net net proceeds […] will allow the company to pursue opportunities where we can become an operator but also to grow and enhance our exploration portfolio via potential investment in new licence awards.’

In aggregate, 20,537,300 new ordinary shares at a placing price of 21.0 pence are being placed.