3rd Apr 2017 07:05
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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3 April 2017
LGO Energy Plc
("LGO" or the "Company")
Successful Result of Offer
LGO Energy plc (AIM:LGO), the oil and gas company with reserves, resources and production onshore Trinidad, announced on 31 March 2017 a fundraising of £2.5 million (before expenses) at an issue price of 2.2 pence per New Ordinary Share, by way of a placing of £2.2 million by VSA Capital (the "Placing") and a fully underwritten offer of £0.3 million via PrimaryBid (the "Offer") (together the "Fundraising").
The Offer received a very strong response from investors and was fully subscribed. The Offer was on a "first come, first serve" basis and was closed early at 4.25 p.m. on 2 April 2017.
As announced on 31 March 2017, as a result of the Fundraising, the Company will issue 113,636,374 new ordinary shares of 0.05p each ("New Ordinary Shares"). The New Ordinary Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 6 April 2017.
Neil Ritson, Chief Executive Officer of LGO, commented:
"We are delighted to have received support from new and existing shareholders who participated in the fully subscribed Offer. We undertook the Offer, which was fully underwritten, as part of the Fundraising, to give our retail shareholders the opportunity to participate through the PrimaryBid platform. This successful Fundraising will allow us to continue to drill Mayaro Sandstone infill wells in the Goudron Field, amongst other activities, continuing to build momentum in our operations in Trinidad."
The Company's Enlarged Share Capital
Following completion of the Fundraising, the Company's Enlarged Share Capital will comprise 539,197,502 Ordinary Shares. This figure may be used by Shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Enquiries:
LGO Energy plc | +44 (0) 203 794 9230 |
Neil Ritson/ Fergus Jenkins
| |
VSA Capital | +44 (0) 20 3005 5000 |
Financial Advisers and Broker to the Placing | |
Andrew Monk/ Andrew Raca/ Justin McKeegan | |
Beaumont Cornish Limited |
+44(0) 20 7628 3396 |
Nominated Adviser | |
Roland Cornish/ Rosalind Hill Abrahams
| |
Camarco | +44 (0) 20 3757 4983 |
Public and Investor Relations Gordon Poole/ Billy Clegg | |
FirstEnergy Capital LLP | +44 (0) 20 7448 0200 |
Joint Broker | |
Jonathan Wright/David van Erp | |
PrimaryBid Limited | +44 (0) 207 491 6519 |
Dave Mutton |
Glossary:
2C | most likely or P50 Contingent Resources according to PRMS |
2P | the Proven plus Probable Reserves according to PRMS |
API gravity | a measure of oil density. API gravity is the inverse measure of a petroleum liquid's density relative to that of water, which is designated with a value 10. If one petroleum liquid is less dense than another, it has a greater API gravity |
C-sand | sandstone reservoirs below the pre-Mayaro unconformity and above the pre-Lower Cruse unconformity encompassing sandstones of equivalent age to both the Gros Morne and the Lower Cruse formations |
Mayaro Sandstone | alternative name for the Goudron Sandstones occurring at stratigraphic intervals above the pre-Mayaro unconformity |
P50 (best estimate) | the most likely estimate of a parameter based on all available data, also often termed the P50 (or the value of a probability distribution of outcomes at the 50% confidence level) |
Probable Reserves | those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P) |
Proven Reserves | those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable (1P), from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations |
Notes to Editors
LGO Energy plc ("LGO") is an onshore Trinidad focused production, development and exploration company.
LGO has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base LGO has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases.
Trinidad has an established oil economy with infrastructure, skills and people. Trinidad has produced over 3 billion barrels of oil to date onshore over the last 100 years and the geology is low risk and highly prospective. Major oil companies operating in country include BP, Shell, BHP Billiton and Perenco. Despite the historical financial constraints, LGO has maintained its license to operate with strong relationships with the State Oil Company, communities, supply chain and Government.
Related Shares:
CERP.L