LONDON (Alliance News) - LGO Energy PLC said Well Services Petroleum Co Ltd has sold around a 6.8% stake in the business after offloading 502.9 million shares late Wednesday.
LGO Energy confirmed Well Services had a stake above 6% prior to the transaction, and that it held no shares following the sale. Based on the 7.38 billion shares currently in issue, the shares sold by Well Services represents a 6.8% stake in the business.
Earlier Wednesday, LGO Energy agreed to pay off its existing bank debt and put in place a new funding facility, in order to get out of its current default position.
LGO said it has agreed new USD8.6 million convertible security funding agreement with Lind Partners LLC. Of that, USD1.8 million will initially be used to settle its remaining debt to BNP Paribas, which will take it out of its covenant default position.
That default, which occurred in October 2015, has left LGO "unable to deploy significant capital to oil-field operations in Trinidad throughout 2016" and the company said it will now be able to operate freely.
LGO shares closed 30% higher on Wednesday at 0.140 pence per share, giving it a market capitalisation of about GBP10.6 million.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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