Leni Gas and Oil says that Meridian SEZC (Meridian) and LGO have entered into a definitive agreement through which Meridian will provide up to USD$50 million of debt with a first draw down scheduled to be $20 million.

This securitised commercial debt will be repayable on a straight line basis over 5 years. The arrangement does not require LGO to issue any new equity.

The deal is subject to final documentation and regulatory approvals and is expected to be completed shortly.

Neil Ritson, Chief Executive of LGO commented: "This represents a very significant step forward for the Company and will provide the funds needed for the development of our existing reserve base in Trinidad and Spain, and will additionally accelerate our plans for production growth in Trinidad."

Tags: Leni Gas & Oil Plc