LEKOIL

Investor news

17.07.2013

Placing of new Ordinary Shares at 39 pence per share to raise approximately US$20.0 million

Lekoil (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa more broadly, announces that it has conditionally raised, in aggregate, gross proceeds of approximately US$20.0 million (approximately £13.2 million) through the placing of, in aggregate, 33,850,000 new Ordinary Shares at a placing price of 39 pence per Ordinary Share (the "Placing Price") with certain existing and new institutional and other investors (the "Placing").  The Placing, which has been conducted by Mirabaud acting as Sole Bookrunner and Revere Securities acting as US Placing Agent, pursuant to the terms of the Placing Agreement, is conditional upon Admission.

 

The net proceeds of the Placing will be used to fund the drilling and testing of the sidetrack well: Ogo-1 ST, on the OPL310 licence offshore Nigeria, as referenced in the announcement dated 26 June 2013, as well as for general working capital purposes.

 

The Placing will be conducted in two stages, with the First Placing Shares being placed using the Directors’ existing authority to allot shares for cash on a non pre-emptive basis, as granted at Lekoil’s most recent EGM, and the Second Placing Shares being placed conditionally upon, inter alia, the passing of the Resolutions at the Extraordinary General Meeting to be held on 7 August 2013.

 

Applications will be made for the First Placing Shares and the Second Placing Shares to be admitted to trading on AIM and it is currently expected that trading in the First Placing Shares and the Second Placing Shares will commence on 22 July 2013 and 9 August 2013, respectively.

 

The Company also announces that, pursuant to certain costs associated with the admission of the Company’s ordinary shares (the “Ordinary Shares”) to trading on the AIM market of the London Stock Exchange,  it has settled these costs through the issue and allotment of 250,000 new Ordinary Shares in lieu of payment (the “Fee Shares”). Admission to trading of the Fee Shares is expected to occur on 22 July 2013, in conjunction with the admission of the First Placing Shares.

 

Following admission to trading of the First Placing Shares and the Fee Shares, the Company will have 201,026,233 Ordinary Shares in issue. Following the issue of the Second Placing Shares, the Company will have 216,624,233 Ordinary Shares in issue.

 

Olalekan Akinyanmi, Chief Executive Officer of Lekoil, commented:

 "We are pleased with the interest and support we have seen from both existing and new investors in Lekoil’s growth strategy, following the recent discovery of oil in the Ogo-1 well on OPL310. The net proceeds from this entire fundraising will allow the Company fully to complete the drilling and testing of the Ogo-1 sidetrack, as well as continuing to identify and progress further opportunities."

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