The major backer of oil and gas production in East Yorkshire has announced a share placing to raise £1.1m.

Reabold Resources said in a statement today the proceeds would be used to develop the West Newton project in Holderness.

The Environment Agency recently approved plans for a lower-volume fracture of the A-2 well at the West Newton-A site. The hydraulic fracturing plan is currently being assessed by regulators.

Reabold’s statement said the placing would offer shares at 0.1p each.

The proceeds would pay Reabold’s share of the cost of the frack, the statement said. It would also cover the costs of the site operator, Rathlin Energy, which is majority owned by Reabold.

The share placing is a condition of a commitment last month by a group of US investors to buy a £1.9m stake in the West Newton project.  

The placing must be approved by shareholders at a Reabold Resources general meeting.

Reabold Resources holds a near 80% stake in Rathlin Energy.

Reabold has a 69.9% interest in the West Newton licence through its stake in Rathlin. Reabold also has a further 16.6665% direct interest in the licence.

• East Yorkshire Council this afternoon unanimously opposed the fracking plan at West Newton. Details here