LGO energy raises £1.18m to accelerate drilling program at Trinidad wells

13th Dec 2016 07:57

(ShareCast News) - AIM-listed oil and gas explorer LGO Energy has raised £1.18m in equity to accelerate the drilling of its sandstone wells in Trinidad.The company will use the £1.funds raised to hasten the drilling of the Mayaro sandstone infill wells at its Goudron Field in Trinidad, and for use as working capital.Before the placement, the company had enough funds to commit to the first well of the initial ten well Mayaro sandstone program and expected to fund further wells from free-cash flow. With the flexibility provided by the equity raising the company will now be able to commit to a program featuring multiple wells.Chief executive Neil Ritson said: "With the company's debt re-financing completed, all major Goudron creditors resolved and with stronger oil price expectations, the board is keen to move as quickly as possible to progress the development drilling at Goudron to take advantage of the availability of services at competitive prices."Raising new funds will allow us to immediately accelerate the low risk development drilling campaign and bring forward the production that comes with that investment."The company raised the £1.18m from a share placing of 984.6m shares of 0.05p, which were sold at 0.12p each.The shares will be admitted to trade on AIM around 19 December and the company now has a share capital of 8.3bn with voting rights.