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Baltic Oil Terminals plc has announced a placing to raise GBP 950,000 (gross) in order to progress its fuel oil optimization project at the company's refined product terminal in Aabenraa, Denmark.

The implementation of the project involves a re-engineering of the present pumping and hydraulic configuration at the terminal through the replacement of the existing centrifugal pumps with modern and efficient screw pumps manufactured by Leistritz Pumpen GmbH in Germany.

In addition, the pumping flow lines for the loading of vessels will be reconfigured to allow a step up in the flow rates when loading vessels and thereby significantly increasing the potential throughput of the Aabenraa facility.

The plan has a total budget of 1.2 million Euros and implementation is expected to be completed by the end of this year. According to Baltic Oil, present capacity will remain unaffected by the modifications and normal operations will continue during the rest of 2012.

Westhouse Securities Limited, acting on behalf of Baltic Oil, has placed 7,307,694 new ordinary shares of 1 pence each in the company at 13 pence per share with certain institutional investors, to raise £0.95 million before expenses. The placing price represents a 5.5 percent discount to the company's closing share price on 21 May 2012.

Application has been made for the 7,307,694 new Shares, which will rank pari passu with the company's existing shares, to be admitted to trading on AIM. Trading is expected to commence on 24 May 2012.

Trading Update and 2011 Results

Baltic Oil said it expects to publish its results, annual report and accounts for the year ended 31 December 2011 towards the end of June 2012. The board said it expects the results to be 'in line with market expectations'.

In addition, the company is currently in preliminary negotiations over the refinancing of its 15% $11m Secured Fixed Rate Loan Notes, due to mature in May 2013.