Lansdowne Oil & Gas Plc (LON:LOGP) is making preparations for a possible new equity funding.
The Irish oil junior has asked investors for permission to a batch of issue new shares - potentially representing more than 200% of its current share capital - as it attempts to resurrect the company.
Lansdowne shares are presently suspended. The company last month learned it would have to make payments to rig contractor Transocean following a court ruling.
It also needs new working capital if it is to survive long enough to see any progress with the long awaited Barryroe project (it has 25% of the undeveloped oilfield).
A possible new funding deal is still being worked on, but in the meantime Lansdowne is pre-emptively seeking permission to issue 350mln new shares.
The company noted that if it alternatively waited until a funding agreement was agreed it would take a further two and a half weeks to complete the arrangements.
“The directors do not believe that delaying completion of such a potential fundraising would be in the best interests of the company and the shareholders as a whole,” the company said in a statement.
“To the extent the directors intend to proceed with a potential fundraising, the company will notify the shareholders of the terms of such potential fundraising prior to its completion.”