LGO Energy PLC (LON:LGO) has raised £1.18mln through an oversubscribed share placing.
The cash injection further supports the company as it prepares to restart new drilling at the Goudron field in Trinidad, where it intends to drill shallow wells to tap the Mayaro sandstone reservoir.
It comes after LGO announced a refinancing and funding deal with New York-based alternative asset management firm Lind Partners, which saw it bring in US$8.6mln from the issue of convertible debt securities.
LGO this morning explained that prior to the equity raise it had enough funds to commit the first ten new wells, before funding further drilling from cash flow, but, now it has greater flexibility and can now commit to a more efficient programme of multiple wells.
"With the Company's debt re-financing completed, all major Goudron creditors resolved and with stronger oil price expectations, the board is keen to move as quickly as possible to progress the development drilling at Goudron to take advantage of the availability of services at competitive prices,” said Neil Ritson, LGO chief executive.
“Raising new funds will allow us to immediately accelerate the low risk development drilling campaign and bring forward the production that comes with that investment."
LGO is issuing 984mln new shares priced of 0.12p each.