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Viridas cashes in Leed Petroleum stake

Viridas cashes in Leed Petroleum stake

Investment group Viridas (LON:VIR) has made £2.87 million by offloading most of its stake in Leed Petroleum (LON:LDP), selling 592,666,667 shares at an average price of 0.48 pence.

It will continue to hold 166,666,667 warrants to subscribe for new Leeds shares at a subscription price of 0.15 pence each.

Viridas chairman Nicholas Lee said: "Given the increase in the valuation of Leed, and the strong interest in the company being shown by a range of investors, Viridas has decided to sell the majority of its holding in order to make funds available for other investment opportunities. 

“I continue to believe that Leed represents an exciting investment opportunity and so Viridas has decided to retain both a financial interest in Leed and I will also continue as a director of the company,” he added.

Leed had operated a portfolio of shallow-water oil and gas production assets in the Gulf of Mexico, but it sold these to a private company in May last year for US$16 million in order to satisfy debt.  It had started a strategic review at the beginning of the year after reporting a drop in production and dwindling reserves.

In September Leed switched into coal, buying a 17.5-per cent interest in Kyrgyz Republic-based Manas Coal – a coking coal exploration and development company.

The news caused a brief spike in Leed’s share price, but it spent the latter part of the year languishing at or below the 0.010 pence a share mark.  Just before Christmas, it began a strong rise which took it to 0.5 pence over the last few days.

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Newswire
January 24 2012

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