LONDON (Alliance News) - LGO Energy PLC Tuesday said it has successfully agreed the sale of over 10,000 barrels of oil stocks in Spain.
The company said it has now received a commitment from a Spanish buyer for its local subsidiary, Compania Petrolifera de Sedano, or CPS, to deliver a total of 11,200 barrels of oil in December and January.
LGO said the oil had been sold at a price that was "competitive" with local fuel oil, and the funds will be used in operations at the subsidiary and as generate working capital.
"We are happy to have concluded the sale of accumulated surplus stocks of oil built up at the Ayoluengo field over 2016. Whilst the company is still awaiting a final decision from the Spanish government on CPS's application for a 10-year concession renewal from 1 February 2017 we are continuing with normal operations and preparing for various contingencies, including potentially applying for a new 30-year concession should the company consider that to be advantageous," said Chief Executive Neil Ritson in a statement.
Shares in LGO Energy were down 7.4% at 0.103 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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