Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Conditionally Raises £7.0 million
Africa Oilfield Logistics Ltd, the AIM listed African focussed support services and logistics company, has announced 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 at a price of 9.0 pence per Share.
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. 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.”
