LEK.L Share News (LEK)

LONDON (Alliance News) - Oil and gas exploration company Lekoil said it has completed its USD100 million placing to fund drilling programmes.

Lekoil said it placed 113.3 million shares at 55 pence per share with existing and new institutional investors.

On Thursday, the company which holds interest offshore Nigeria and Namibia, said the net proceeds of the placing would be used to fund the drilling completion and testing of its Ogo-1 well and sidetrack well, as well as future development of the OML113 licence offshore Nigeria.

The funds will also be used for general working capital purposes, including the full repayment of its loan facility with Afren PLC.

Lekoil said the placing will be conducted in two stages, with the first shares being placed using the directors' existing authority to allot shares for cash on a non pre-emptive basis, and the second being placed conditionally upon, among other things, the passing of the resolutions at the extraordinary general meeting to be held on November 21.

Lekoil listed on AIM in May, when its raised gross proceeds of around USD49.1 million.

The stock was trading 56.94 Friday morning, up 0.19 pence or 0.3%.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

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