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.