LGO Energy share price: Company raises £1.5 million in shares

By:
on Jan 15, 2015
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Lgo Energy PLC (LON:LGO) today issued a regulatory statement.

**Highlights from the company’s statement:**
Company has raised £1.575 million before expenses, by way of a Company arranged placing of 52.5 million new ordinary shares (“the Placing Shares”) at a placing price of 3 p per share.Funds will be deployed as additional working capital to ensure the pace of the Company’s planned work program in Trinidad.
LGO confirms that the Full-Tensor Gravity Gradiometry (“FTG”) airborne survey over the Company’s Cedros and Goudron assets, and the entirety of the onshore Southern Basin of Trinidad has now commenced. The aircraft, owned and operated by ARKeX Limited, which arrived in Trinidad on 7 January 2015 has now flown its calibration flights and the main survey acquisition is underway.

Neil Ritson, LGO’s Chief Executive, commented:”LGO is in a very exciting phase of its redevelopment at Goudron with the recent GY-670 well resulting doubling Group production to well over 2,000 barrels of oil per day. The Company is in a strong position to pursue its immediate objectives, including at least seven new C-sand wells in Goudron in 2015 and the securing of a long-term debt facility from a major European lending bank, and these funds ensure those objectives can be aggressively pursued. The commencement of the FTG survey is also excellent news since that data is central to our medium-term plans in the Cedros Peninsula.”

Application is being made for the admission of these Placing Shares to trade on AIM and it is expected that this will occur on 22 January 2015. These Placing Shares will rank pari passu in all respects with the Company’s existing issued ordinary shares. Subsequent to the issuance of these shares the Company will have 2,781,340,849 ordinary shares in issue.
In 2014 LGO agreed to acquire a license to a Full-Tensor Gravity Gradiometry (“FTG”) airborne survey over the entirety of the onshore Southern Basin of Trinidad. This survey, which is an integral part of LGO’s data gathering for its Cedros Peninsula leases is to be acquired as a multi-client survey by ARKeX Limited (“ARKeX”). The Company has been a major promoter of the FTG concept in Trinidad where LGO believes the use of high resolution, high bandwidth gravity gradiometry data can greatly assist in improving the geological understanding in areas where 3D seismic is either difficult or expensive to acquire.

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The survey, in which LGO is being partnered by the Petroleum Company of Trinidad & Tobago (“Petrotrin”), will take approximately 6 weeks to acquire. Initial processed results will be available at the end of the first quarter of 2015. The survey covers an area of approximately 5,700 square kilometres and will be acquired using a fixed wing aircraft flying at 120 metres over the terrain along a flight path made up of 12,800 line-kilometres. The aircraft will simultaneously acquire magnetic field data and also LiDAR over the land area.

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