Troubled Irish exploration firm Lansdowne Oil and Gas is seeking shareholder permission to issue new shares in the company in a bid to raise fresh equity to pay off debt and remain afloat.
The company is a junior partner in Providence Resources’ Barryroe field in the Celtic Sea and will need to pay 20% of the near €6m bill relating to a long-running dispute with drill services firm Transocean.
Its shares are currently suspended and it also needs an injection of working capital.
While discussions regarding a funding deal are ongoing, Lansdowne said yesterday that “it is essential that the company raises additional funds in early course to continue its ongoing business”.
It is pre-emptively seeking permission to issue 350m new shares. Lansdowne said if it waits until a funding agreement is agreed, it would take a further two-and-a-half weeks to complete the arrangements.
“The directors do not believe that delaying completion of such a potential fundraising would be in the best interests of the company and the shareholders as a whole,” the company said.
Meanwhile, Petroceltic — control of which is set to switch to largest independent shareholder Worldview Capital next month — yesterday reported the completion of its AT-13 development well on its key Ain Tsila asset in Algeria; the second of a 24-well programme.
Well test results will be confirmed later this year, but early indications are of excellent reservoir quality.
Petroceltic holds a 38.25% stake in Ain Tsila, with State-owned Sonatrach controlling 44.4% and Italian giant Enel 18.4%.
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