Kerman & Co’s Corporate & Capital Markets Team advised AIM-quoted client LGO Energy plc in connection with a fundraising of £2.5 million.
05 April 2017
Kerman & Co’s Corporate & Capital Markets Team advised AIM-quoted client LGO Energy plc (the “Company”), an oil and gas company with reserves, resources, and production onshore in Trinidad, in connection with a fundraising of £2.5 million. The fundraising was completed by way of the issue of 113,636,374 new ordinary shares of 0.05p each in the Company ("New Ordinary Shares"), at an issue price of 2.2 pence per New Ordinary Share. The fundraising comprised a placing to existing and new shareholders, including UK and Hong Kong based institutions, of £2.2 million by VSA Capital Limited, in conjunction with a fully underwritten offer of £300,000 via PrimaryBid Limited. The proceeds of the fundraising will be used primarily by the Company to (i) continue the drilling of Mayaro Sandstone infill wells in the Goudron Field of Eastern Trinidad; (ii) close the existing arrangements with Beach Oilfield Limited to acquire a 100% controlling interest and access to their petroleum leases in the SW Peninsula of Trinidad; (iii) continue the preparations for a waterflood pilot project in the C-sands at Goudron; (iv) commence an independent resource audit of the SW Peninsula assets leading to the issue of a Competent Persons Report; and (v) corporate overhead and general working capital.
Simon Holden, a Corporate Partner, and Jack Kemmish, a Corporate Solicitor, advised the Company on the deal.