LONDON (Alliance News) - Lekoil Ltd Thursday said that it intends to raise roughly USD100 million in a private placement of new shares with certain existing and new institutional investors.
The oil and gas exploration and development company said the net proceeds of the placing will 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.
It said that funds will also be used for general working capital purposes, including the full repayment of its loan facility with Afren PLC.
Lekoil listed on AIM in May, when its raised gross proceeds of around USD49.1 million.
Shares in the company closed Thursday down 2.4% at 57.59 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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