Shares in Offshore Hydrocarbon Mapping surged by 60% after the exploration technology firm that warned in December it needed increased sales or more cash to survive said it had raised £2.6m and cut spending commitments by $45m (£27.4m).
The loss-making Aberdeen firm has won a vote of confidence from investors who have agreed to a placing at 21.52p per share, up 153% on Friday's closing price.
OHM has also cut a deal which will allow it to substantially reduce outgoings in future with Seatrans, from which it charters the boats used to conduct surveys with the Controlled Source Electromagnetic (CSEM) imaging technology it has developed.
While the directors claim CSEM substantially reduces the risk of drilling dry holes, take-up has been slower than expected and has been hit by the fall in oil prices from $147 per barrel last August to around $70 currently.
"CSEM acquisition and processing revenues have declined approximately 45% over the year to August 31, 2008, to £4.4m for 2009," said OHM yesterday.
OHM has reduced the mini- mum total payment for chartering two boats from Seatrans from $53m to $8m, reflecting the fact it needs less capacity. This will significantly reduce its fixed costs and working capital requirements.
In compensation, OHM has agreed to pay Seatrans $5m through the issue to the company of 14,030,171 shares at 21.52p each.
In a trading update, OHM said revenues are expected to be around £9.2m for the year to August 31, 2009, compared to £10.8m in the preceding year. The pre-tax loss will be £8.6m to £8.8m, compared with £8.7m last year.
In December, chairman Dave Pratt said: "We will, in 2009, require significantly increased revenues and/or further fundraising to get through this difficult period."
The shares closed up 5p at 13.5p, giving OHM a market capitalisation of around £6m.
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