LONDON (Alliance News) - LGO Energy PLC on Tuesday said it has raised GBP1.2 million by placing 984.6 million shares at 0.12 pence per share, and said the funds will be used to accelerate development drilling at the Goudron field in Trinidad.
Prior to the placing, there were 7.38 billion shares in issue. Shares in LGO were down 17% at 0.125p on Tuesday morning.
The company said the funds raised through the oversubscribed stockbroker and company sponsored placement will be used to ramp up the drilling of Mayaro Sandstone infill wells at the Goudron site.
Prior to the placement, LGO had said it had access to the funds necessary to commit to the first well of the initial ten-well Mayaro Sandstone infill program and expected to fund further wells from free-cash flow.
However, LGO said Tuesday that, with the increased flexibility provided by these new funds, it can now commit to a more efficient program of multiple wells.
The new shares are expected to be admitted to trading on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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