LGO raises funds for Goudron development onshore Trinidad

The funds will be deployed as additional working capital to ensure the pace of the company's planned work programme in Trinidad, especially drilling at its flagship Goudron Field development, is not affected by the current lower commodity price environment.

The company's production operations in Trinidad and Spain are inherently low cost and as a result remain economically robust at current and likely future oil prices.

LGO raised the funds by the placing of 52.5 million new ordinary shares at a placing price of GBP 0.03 per share.

In separate news, LGO has confirmed that the Full-Tensor Gravity Gradiometry (FTG) airborne survey over the company's Cedros and Goudron assets, and the entirety of the onshore Southern Basin of Trinidad has now commenced.

The aircraft, owned and operated by ARKeX Limited, which arrived in Trinidad on 7 January 2015 has now flown its calibration flights and the main survey acquisition is underway.

"LGO is in a very exciting phase of its redevelopment at Goudron with the recent GY-670 well resulting doubling group production to well over 2,000 barrels of oil per day,” said Neil Ritson, LGO's chief executive.

“The company is in a strong position to pursue its immediate objectives, including at least seven new C-sand wells in Goudron in 2015 and the securing of a long-term debt facility from a major European lending bank, and these funds ensure those objectives can be aggressively pursued.  The commencement of the FTG survey is also excellent news since that data is central to our medium-term plans in the Cedros Peninsula."