LGO Energy PLC Result of Offer via PrimaryBid (2758B)

TIDMLGO

RNS Number : 2758B

LGO Energy PLC

03 April 2017

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

3 April 2017

LGO Energy Plc

("LGO" or the "Company")

Successful Result of Offer

LGO Energy plc (AIM:LGO), the oil and gas company with reserves, resources and production onshore Trinidad, announced on 31 March 2017 a fundraising of GBP2.5 million (before expenses) at an issue price of 2.2 pence per New Ordinary Share, by way of a placing of GBP2.2 million by VSA Capital (the "Placing") and a fully underwritten offer of GBP0.3 million via PrimaryBid (the "Offer") (together the "Fundraising").

The Offer received a very strong response from investors and was fully subscribed. The Offer was on a "first come, first serve" basis and was closed early at 4.25 p.m. on 2 April 2017.

As announced on 31 March 2017, as a result of the Fundraising, the Company will issue 113,636,374 new ordinary shares of 0.05p each ("New Ordinary Shares"). The New Ordinary Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 6 April 2017.

Neil Ritson, Chief Executive Officer of LGO, commented:

"We are delighted to have received support from new and existing shareholders who participated in the fully subscribed Offer. We undertook the Offer, which was fully underwritten, as part of the Fundraising, to give our retail shareholders the opportunity to participate through the PrimaryBid platform. This successful Fundraising will allow us to continue to drill Mayaro Sandstone infill wells in the Goudron Field, amongst other activities, continuing to build momentum in our operations in Trinidad."

The Company's Enlarged Share Capital

Following completion of the Fundraising, the Company's Enlarged Share Capital will comprise 539,197,502 Ordinary Shares. This figure may be used by Shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Enquiries:

 
 LGO Energy plc                               [phone] 
 Neil Ritson/ Fergus Jenkins 
 VSA Capital                                  [phone] 
 Financial Advisers and Broker to the 
  Placing 
 Andrew Monk/ Andrew Raca/ Justin McKeegan 
 
  Beaumont Cornish Limited                     [phone] 
 Nominated Adviser 
 Roland Cornish/ Rosalind Hill Abrahams 
 
 Camarco                                      [phone] 
 Public and Investor Relations 
  Gordon Poole/ Billy Clegg 
 
 
 FirstEnergy Capital LLP                      [phone] 
 Joint Broker 
 Jonathan Wright/David van Erp 
 
 PrimaryBid Limited                           [phone] 
 Dave Mutton 
 

Glossary:

 
 2C                    most likely or P50 Contingent Resources 
                        according to PRMS 
--------------------  ----------------------------------------- 
 2P                    the Proven plus Probable Reserves 
                        according to PRMS 
--------------------  ----------------------------------------- 
 API gravity           a measure of oil density. API gravity 
                        is the inverse measure of a petroleum 
                        liquid's density relative to that 
                        of water, which is designated with 
                        a value 10. If one petroleum liquid 
                        is less dense than another, it 
                        has a greater API gravity 
--------------------  ----------------------------------------- 
 C-sand                sandstone reservoirs below the 
                        pre-Mayaro unconformity and above 
                        the pre-Lower Cruse unconformity 
                        encompassing sandstones of equivalent 
                        age to both the Gros Morne and 
                        the Lower Cruse formations 
--------------------  ----------------------------------------- 
 Mayaro Sandstone      alternative name for the Goudron 
                        Sandstones occurring at stratigraphic 
                        intervals above the pre-Mayaro 
                        unconformity 
--------------------  ----------------------------------------- 
 P50 (best estimate)   the most likely estimate of a parameter 
                        based on all available data, also 
                        often termed the P50 (or the value 
                        of a probability distribution of 
                        outcomes at the 50% confidence 
                        level) 
--------------------  ----------------------------------------- 
 Probable Reserves     those additional reserves which 
                        analysis of geoscience and engineering 
                        data indicate are less likely to 
                        be recovered than Proved Reserves 
                        but more certain to be recovered 
                        than Possible Reserves. It is equally 
                        likely that actual remaining quantities 
                        recovered will be greater than 
                        or less than the sum of the estimated 
                        Proved plus Probable Reserves (2P) 
--------------------  ----------------------------------------- 
 Proven Reserves       those quantities of petroleum, 
                        which, by analysis of geoscience 
                        and engineering data, can be estimated 
                        with reasonable certainty to be 
                        commercially recoverable (1P), 
                        from a given date forward, from 
                        known reservoirs and under defined 
                        economic conditions, operating 
                        methods, and government regulations 
--------------------  ----------------------------------------- 
 

Notes to Editors

LGO Energy plc ("LGO") is an onshore Trinidad focused production, development and exploration company.

LGO has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base LGO has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases.

Trinidad has an established oil economy with infrastructure, skills and people. Trinidad has produced over 3 billion barrels of oil to date onshore over the last 100 years and the geology is low risk and highly prospective. Major oil companies operating in country include BP, Shell, BHP Billiton and Perenco. Despite the historical financial constraints, LGO has maintained its license to operate with strong relationships with the State Oil Company, communities, supply chain and Government.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IOELLFVASVIFIID

(END) Dow Jones Newswires

April 03, 2017 02:05 ET (06:05 GMT)