Leni Gas & Oil Raises £7 million for Trinidad Investment
LGO today announces that the Company has raised £7 million before expenses, by way of a Company arranged placing of 200 million new ordinary shares (“the Placing Shares”) at a placing price of 3.5p per share. This placing will enable the Company to accelerate the closing of the US$5 million Trinity-Inniss Oil Field transaction announced yesterday without drawing down on the Company’s short-term debt facilities and will provide LGO with capital for its expansion plans in Trinidad.
This new funding will also provide the necessary working capital to deploy the work-over rigs to Trinity-Inniss without impacting the ongoing 30 well development programme at the Company’s nearby producing Goudron Oil Field.
LGO continues to have access to undrawn short-term debt facilities, should that be required, and is also in negotiation for longer-term senior debt.
Neil Ritson, LGO’s Chief Executive, commented:
“Access to this capital will enable LGO to accelerate the closing the new producing Trinity-Inniss Oil Field transaction announced yesterday. Drilling work at Goudron is continuing to plan and we anticipate being able to move a work-over rig to the Trinity-Inniss Field immediately after closing the acquisition.”
Leni Gas & Oil PLC