AJ Lucas Struggles To Raise Capital Amid UK Fracking Ban

By Glenn Dyer | More Articles by Glenn Dyer

Investors have ignored AJ Lucas’ latest attempt to raise money for its UK oil and gas exploration efforts.

The company announced yesterday that it’s latest raising aimed at retail shareholders had raised just $2.4 million from retail investors through a 19-for-20 entitlement offer instead of the $8.1 million it was looking for.

Making the rejection even more notable was that the poor uptake came after the offer was extended by a week.

Yesterday Lucas told the ASX that the retail offer had been completed with applications for 37.1 million shares at $0.065 each.

Last month AJ Lucas revealed institutional investors had only paid $26.2 million for new shares, when it was looking for $46.3 million.

This brings the total amount raised under the Entitlement Offer to approximately $28.6 million.

The money raised is supposed to be for ongoing activities in the UK, where the company operates the Cuadrilla joint venture.

The UK government of Prime Minister Boris Johnson recently imposed a moratorium on hydraulic fracturing, halting operations at Cuadrilla.

Despite the vote of no confidence, Lucas shares rose 3% to 6.9 cents yesterday.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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