Portland Gas Plc declares the placing of 2,535,211 new ordinary shares at 355p per share to raise £9 million before expenses. The shares were placed by Seymour Pierce Limited with new and existing institutional investors.

Following the placing, the Company will have 70,384,727 ordinary shares in issue.

Application has been made for the shares to be admitted to AIM and admission of the shares is expected to be on 16 July 2008.

The net proceeds of the Placing receivable by the Company will be applied to support the advanced work on its Portland gas storage project; to provide the funds to drill a confirmation borehole later this year at its Larne Lough project in Northern Ireland; and to provide funds to develop further storage opportunities.

Commenting on the placing, Andrew Hindle, CEO, said,"The placing provides funding for Portland Gas to continue to develop our existing gas storage projects in the UK and to accelerate the development of exciting new storage opportunities."

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