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Lansdowne Oil & Gas to re-emerge as it lands new funds

Published: 18:21 17 Jun 2016 AEST

onshore drilling operation
Lansdowne shares are expected to resume trading on June 22

Lansdowne Oil & Gas PLC (LON:LOGP) has unveiled a new funding deal which will see the company re-emerge.

It has raised £2.1mln of new capital, and citing an ‘improving environment’ has now terminated its formal sale process.

Some 210mln new shares are being sold to new and existing investors at a placing price of 1p per share.

The cash injection means Lansdowne can cover its share of amounts payable to Transocean by Barryroe partner and operator Providence Resources PLC (LON:PVR), following a recent court appeal ruling relating to a past dispute.

Importantly, the funding means Lansdowne can now meet its ongoing working capital requirements until mid-2017.

Additionally, the company told investors that LC Capital Master Fund has agreed to convert £930,000 of debt (a senior secured loan note issued in March 2015) and extend the term of other loan notes to June 30 2017.

The placing shares will represent 43.7% of Lansdowne’s enlarged share capital, while the shares issued as a result of the debt conversion will equate to 19.4% of the company.

LC Capital Master Fund will subsequently own 28.8% of Lansdowne.

Lansdowne told investors it has requested its shares resume trading from suspension on June 22. 

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