Shares digital

Imp Energy (IEC) £10.04

Oil producer Imperial Energy has positioned itself for a $600 million rights issue after struggling to secure debt financing for future drilling work. (Read the full story: www.sharesmagazine.com/node/3810)

Shares says: It’s not a good time to be raising money, for this reason at best the company is a hold although there is a small chance that a bid from Gazprom will come out the woodwork.

FT says: Imperial’s announcement that it is likely to hold a rights issue to raise up to $600 million, to pay for its planned investment this year and next, shows that even in the oil industry, banks have become extremely picky about lending significant amounts of new money.

Telegraph says: Imperial's move is one of the first examples of the credit crunch hitting the oil and gas sector. With oil prices surging to a record high of $111 million a barrel last month, companies in the sector have so far found it relatively easy to get debt.

The City - says: The announcement may be used to bring the banks back to the table and negotiate more favourable lending terms from a stronger position.