LGO Energy has raised £1.95million through share placement in bid to pay its debts.
The company placed 424,209,334 new ordinary shares.
The funds will allow LGO to bring its payments with its banker BNP Paribas up to date until the end of May.
The cash will also support LGO’s plans to ramp up its onshore development and production for its Goudron Field in Trinidad.
Chief executive Neil Ritson said: “We have raised additional equity to provide immediate working capital to the group. Work is now underway in the Goudron field to raise production levels through the various well work that has recently been announced. The company is pressing ahead with rebuilding the production potential of its Trinidad assets as oil prices start to recover and where low cost onshore operations have a natural advantage.
“The board is also continuing to pursue longer term solutions to the Company’s capital needs including the possible repayment or refinancing of our banking facility and the raising of the required working capital to grow the business.”
Pending final approval, LGO will now have 3,954,053,046 ordinary shares in issue.