LGO Energy may put itself up for sale as part of strategic review

LGO Energy has begun a formal strategic review of its business and assets to consider all options to maximise shareholder value, as it announced the cancellation of its sale and purchase deal with Trinity Exploration & Production.

The oil production and development company, which has operations and oil reserves in Trinidad and Spain, said it was considering putting itself up for sale, having recently frightened investors by warning it was running out of cash only to frantically renegotiate terms with its bank.

“The board now feels that a widening of the strategic options being considered is both timely and appropriate and that all options available to the company should now be considered, including strategic partnerships, strategic investments, asset sales, mergers and potential offers for the company.”

In addition, LGO said that it has agreed with Trinity a full and final settlement for the immediate cancellation of the sale and purchase agreement for a consideration of $265,000 to Trinity including payments of the company’s associated legal fees.

The consideration is to be paid in LGO ordinary shares equivalent to 41.5m.

At 0943 GMT, LGO shares were down 23.5% to 0.3253p