Independent NU-Oil raised raise US$2.56 million (£2.05 million) in new shares to help it with its stranded and marginal field strategy with 50% owned MFDevCo (Marginal Field Development Co.).
NU-Oil says its next logical stage being the acquisition of a project, adding this could take time, due to due diligence and engineering work requirements.
NU-Oil recently agreed a deal with a service provider to restore production from its onshore western Newfoundland assets, with material costs covered by the service provider PVF.
Meanwhile, MFDevCo recently agreed a collaboration agreement with CNOOC subsidiary COSL Drilling.
Nigel Burton, CEO of NU-Oil, commented: "Having repositioned our western Newfoundland assets and seen MFDevCo secure a collaboration agreement with COSL Drilling Pan Pacific, the directors are pleased that significant institutional support has allowed the company to raise funds to enable it to continue implementation of the business plan. These funds are expected to be sufficient to enable the company to secure its first project using the low cost solutions devised and delivered by MFDevCo and the MFD Consortium."