B.P. Seeking £60m On U.K. Market

Press, Volume CV, Issue 30959, 15 January 1966, Page 16

B.P. Seeking £60m On U.K. Market

(N.Z P A.-Rcuter —Copyright; LONDON, Jan. 14. The £3o3m oil giant, British Petroleum, which recently found natural gas under the North Sea, yesterday invited its shareholders to put up another i‘6om capital. Half the existing shares in i the company are owned by the British Government. A spokesman for the Treasury said this afternoon that subject to satisfactory terms, the Government would exercise its rights in full by subscribing to the new issue. To keep up its present proportional holding, the Government will have to spend f3om. Development Part of the additional capital is wanted for developments planned by North Sea Gas Ex-

ploration, one of the company’s subsidiaries which recently found a conmiercial supply of gas 50 miles off the east coast of England. Between £lom and £2om of the new capital will be spent providing a pipeline to move gas from the undersea well. The company also needs additional money for a refinery and other developments in Australia, exploration work in Nigeria and in the Arabian State of Abu Dhabi and a pipeline in Libya.

Sharp Reaction Stock market reaction to news of the increased capital was to knock 2s 9d off B.P.'s share price. It has been a disappointing week for the gilt-edged market. says Reuter’s correspondent. The week culminated in a depressed finish in the free of competition posed by British Petroleum's £6om rights issue—the bigest operation of this nature ever mounted in the London market. Trade Figures From Friday to Tuesday, quotations drifted easier. Wednesday brought better than expected United Kingdom December trade figures, causing a change of direction that continued until B.P. wiped out all the advance just before the finish on Thursday afternoon. Falls over the week were small. Commonwealth loans generally moved in sympathy with gilts, though Rhodesians drew encouragement from signs that the embargo measures were effective.