9th Mar 2016 08:25
LONDON (Alliance News) - LGO Energy PLC Wednesday said it has given up its search for future funding options through its strategic review as it believes there are other refinancing opportunities available that are more attractive.
LGO has now terminated the formal sales process launched in December after considering its options.
LGO originally launched the strategic review in November to investigate what sources of funding were available to the company from the US and elsewhere, and the company widened the scope of its search in December by looking into strategic partnerships, asset sales, mergers and potential offers.
"Having considered the options available, the board has decided to terminate the formal sales process with immediate effect. The board believes that the other strategic refinancing opportunities available represent the best approach for the group and the board now intends to focus exclusively on those funding routes," said LGO.
LGO did not provide any more detail on what the other refinancing opportunities are.
Separately, the company also said it has initiated an expansion of the ongoing programme of well work in the Goudron field in Trinidad, in the hope it can increase production progressively over the next two months by re-completing wells, some of which were drilled in 2014 and 2015, it said.
LGO said it will target wells which are known to have oil pay that has not yet been placed on production.
"This work will be funded through service income in the company's Trinidadian subsidiary, Columbus Energy Services Ltd, which has the flexibility to deploy its free cash flow independent of restrictions currently faced by Goudron E&P Ltd. Further details of this program will be announced in the coming weeks," said the company.
Chief Executive Neil Ritson said the programme expansion was approved "in light of stabilising oil prices".
LGO shares were up 6.6% to 0.341 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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