24th Jun 2013 07:00
For Immediate Release, 7 am
24 June 2013
Leni Gas & Oil PLC
("LGO" or the "Company")
Placement Prior to Debt Drawdown
Leni Gas & Oil plc today announces it has raised £1.3 million gross proceeds through the issue of 162.5 million new ordinary shares of 0.05p each in the Company ("Placing Shares") at a price of 0.8 pence per share (the "Placing").
This Placing was a specific condition for securing the first drawdown from a bridging loan with one of the two debt providers currently working with the Company to provide long-term finance to its oil production operations in Trinidad and Spain. The initial facility will provide debt financing pending the expected completion of the Meridian SECZ backed facility for US$50 million, previously announced in May.
Funds from the Placing will be used to strengthen the Company's balance sheet and will be used to continue the expansion of its Trinidad oil production operations. Recently the Company announced Group production of over 450 barrels of oil per day, two-thirds of which is derived from Trinidad. Oil production growth is anticipated to continue through the remainder of 2013 and beyond.
The Placing was made by the Company through various private client brokers, and was oversubscribed.
Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings in the Placing Shares on AIM are expected to commence on 28 June 2013. Subsequent to the issuance of these shares the Company will have 2,040,247,601 ordinary shares in issue.
Neil Ritson, LGO's Chief Executive commented: "LGO is close to closing debt facilities that will provide a long-term stable platform for the growth of production from the Company's extensive asset base in Trinidad. This placing represents a logical next step in that process and provides an improved working capital position in advance of initial loan drawdown. We are delighted with progress in funding the Company and can look forward to sustained production growth."
Enquiries:
Leni Gas & Oil plc
David Lenigas Neil Ritson | +44 (0)20 7440 0645
|
Beaumont Cornish Limited
Nomad and Joint Broker Rosalind Hill Abrahams Roland Cornish | +44(0) 20 7628 3396 |
Old Park Lane Capital Plc
Joint Broker Michael Parnes | +44(0) 20 7493 8188 |
Shore Capital
Joint Broker
Pascal Keane +44 (0) 20 7408 4090
Jerry Keen (Corporate Broking)
Pelham Bell Pottinger
Financial PR Mark Antelme | +44 (0) 20 7861 3232 |
Henry Lerwill |
Related Shares:
CERP.L