LGO Raises £7 million for Trinidad Investment
Leni Gas & Oil Plc (LGO) announced 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."
Update on Well GY-667:
Well number four of the 30 well development program at Goudron, GY-667, is drilling ahead at a depth of 1,530 feet (at 12:00 hrs T&T time) in the Goudron Sandstones towards the first planned casing point at approximately 1,900 feet. Indications whilst drilling are of significant net oil pay in the Goudron Sands with extensive oil shows being reported from mud logging. The primary target for GY-667 is the Gros Morne Sandstone, which is anticipated to start at around 2,300 feet. Further news on Goudron drilling is anticipated in the next week.
It is expected that admission of these Placing Shares on AIM will occur and that trading in the new ordinary shares will commence on AIM on 25 July 2014. These Placing Shares will rank pari passu in all respects with the Company's existing issued ordinary shares. Subsequent to the issuance of these shares the Company will have 2,668,195,353 ordinary shares in issue.