Shares in i3 Energy sank today after the North Sea oil firm revealed plans to raise £16 million through a share placing.

The company said it would put the cash towards this year’s multi-well drilling campaign at its Liberator oil field and Serenity prospect.

Shares were down 9.2% to 39.5p in London at noon.

Based in Westhill, near Aberdeen, i3 is trying to secure a partner to help develop Liberator, in the outer Moray Firth.

Chief executive Majid Shafiq said: “Today’s placing, alongside our anticipated junior loan facility, allows us to retain a 100% interest in and operatorship of the Liberator field and Serenity prospect and ensures i3 is in a robust and competitive position to deliver substantial shareholder growth as we move into an operationally driven phase.

“This is a further key milestone that the management team has delivered on and ensures that the drilling of our first three wells remains on track to commence in June 2019 using the Blackford Dolphin drilling rig.”

READ: i3 Energy hires Dolphin for three-well campaign, share price jumps