3rd Nov 2015 09:38
LONDON (Alliance News) - LGO Energy PLC on Tuesday said it has hired advisers to sound out potential strategic investors as it looks to bridge the funding gap it faces following the loss of the GY-678 well at the Goudron field in Trinidad.
In October, LGO said mechanical problems suffered at the GY-678 well will have "significant cost implications" for the company, and said the lost production from the well will hit its cashflow forecasts.
On Tuesday, LGO said delays have now occurred in the settlement of the remaining capital costs for its recent drilling programme, amounting to around USD4.0 million. LGO said it will need BNP Paribas, its lender, to approve the release of specific funds previously drawn down by the company.
LGO is considering a range of options to remedy its funding issues and said it has now hired Wellford Capital Markets LLC and Height Securities LLC to advise on strategic investments in the company.
LGO shares were down 8.2% to 0.528 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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