AAI.L Regulatory News (AAI)

Africa Oilfield Logistics Limited / Ticker: AOL / Index: AIM / Sector: Support Services

17 July 2014

Africa Oilfield Logistics Limited ('Africa Oilfield' or 'the Company')

Conditionally Raises £7.0 million

Africa Oilfield Logistics Ltd, the AIM listed African focussed support services and logistics company, is pleased to announce that it has conditionally raised approximately £7.0 million (approximately US$12.0 million) before expenses by way of the issue of 77,800,000 new ordinary shares in the Company (the "Shares") at a price of 9.0 pence per Share (the "Fundraising").

Use of Proceeds

The net proceeds of the Fundraising, in conjunction with the Company's existing cash resources, are to be applied mainly to the growth initiatives of the Company's primary investment, Ardan Risk & Support Services ("Ardan"). These include:

· Approximately US$3.5 million for the expanded civil engineering team, which as announced on 8 July 2014, has doubled operational capacity with an additional 80-man well pad construction team;

· Approximately US$2.5 million for capital expenditure associated with the construction of a logistics hub in Kenya to centralise field operations;

· Approximately US$1.5 million for the establishment of a regional logistics operation in Djibouti; and

· For working capital and general corporate purposes, including working capital in support of any future contract awards. A number of tender processes are ongoing.

Carl Esprey, Chief Executive Officer of Africa Oilfield, said: "With this cash injection of US$12 million, we will be well capitalised to implement our growth strategy and build on our support services platform in Africa, which already boasts an international client list. 

"We have made excellent progress on the ground in structuring our investments to deliver the support services and logistics required by operators in the region. The recent revenue figures from Ardan underscore our successes and highlight the opportunity available to us, something that has been recognised both by new and existing shareholders and reflected in the appetite for the Fundraising."

Director Participation

Pursuant to the Fundraising, certain directors of the Company have committed to subscribe for new Shares as follows:

*subscription to be undertaken by a trust of which Mr Edmonds is a trustee.

** 4,855,173 of the shares in which Mr Mann is interested are held by Meridian Global Energy and Resources Fund Ltd a company of which Mr Mann is a director.

General Meeting

Completion of the Fundraising remains conditional, inter alia, upon the approval of shareholders at a general meeting to be held on 11 August 2014 (the "General Meeting") and upon admission of the new Shares ("Admission") to trading on the AIM market of the London Stock Exchange. A notice convening the General Meeting has been sent to shareholders. Subject to shareholder approval of the Fundraising at the General Meeting, Admission is expected to occur on or around 15 August 2014.

The new Shares, when issued, will rank pari passu with the existing ordinary shares of the Company. Following Admission, the Company's issued share capital would comprise 393,573,366 ordinary shares.

** ENDS **

For further information please visit www.africaoilfieldlogistics.com or contact: