Shares in Heritage Oil have been gushing again today - recording their second consecutive session of double-digit percentage gains after trading in the stock returned.
The mid-cap oil explorer jumped 25.8 – or 21% – to 148.8p on Tuesday after dealing resumed following the shares' suspension more than a month ago when the group announced it was acquiring assets in Nigeria. Today they gained a further 28.2p - or 18.95% - closing the day at 160p to head the FTSE 250 leader board.
On Monday, Heritage revealed plans for a $370m (£238m) rights issue to help to pay for its Nigerian joint venture's proposed acquisition of a 45% stake in a portfolio of the West African country's oil fields. Heritage shareholders will be able to buy shares at a discount in the fund raising, while Tony Buckingham, the supposed former mercenary who founded the company and still owns a 33% of the company, is considering cutting his stake.
However, despite the two days of massive share price gains, the stock remains well below the 465p level at the start of last year - when the shares were marked down after the explorer discovered gas, rather than oil, in Iraq.
Meanwhile, the wider market trod water - finishing the day virtually exactly where it started with the FTSE 100 closing up 4.68 points at 5845.92 and the FTSE 250 off 24.50 points at 11436.44.
