LONDON (Reuters) - Canada-based oil and gas firm Caracal Energy no longer intends to raise $150 million by selling new shares, to help fund an exploration program in Chad, when it lists in London.
Caracal, previously named Griffiths Energy International after its founder Bradley Griffiths, had been expected to complete its initial public offering (IPO) in mid-to-late June.
The company said in a statement on Thursday that it had filed an amended “non-offering” prospectus with the Canadian Securities Administrators but would continue with its plan to list existing shares on the London Stock Exchange (LSE.L).
The company has a partnership with Glencore Xstrata (GLEN.L) in which the commodity group will pay $330.75 million toward Caracal’s capital expenditure in return for 25 percent of two fields, which are due to begin producing this year, and a third of its other license areas.
“The company does not need additional equity capital to fund its developments,” a person familiar with the situation said.
“With the current cash on balance sheet, the proceeds from the Glencore farm-in and revenues from production, the company is fully funded to reach 36 kbopd (thousand barrels of oil per day) gross production by end of 2014.”
The company did not say when the listing would take place.
Reporting by Sarah Yong and Kylie MacLellan; Editing by Elaine Hardcastle