Africa oilfield logistics raises $12 million by share issuance

Africa Oilfield Logistics Ltd an African focused support services and logistics company has announced it has conditionally raised approximately US$12.0 million before expenses by way of the issue of 77,800,000 new ordinary shares in the Company at a price of 9.0 pence per share.

The proceeds of the fundraising together with the existing cash resources the company says are to be applied mainly to the growth initiatives of the Company’s primary investment, Ardan Risk & Support Services.

The monies will be divided into approximately US$3.5 million for the expanded civil engineering team, which has doubled operational capacity with an additional 80-man well pad construction team while  approximately US$2.5 million will be used for capital expenditure associated with the construction of a logistics hub in Kenya to centralise field operations and approximately US$1.5 million for the establishment of a regional logistics operation in Djibouti; and for working capital and general corporate purposes, including working capital in support of any future contract awards.

The company is also waiting for the outcome of a number of tender processes which are ongoing.

According to Africa oilfield CEO Carl Esprey the cash injection of US$12 million, we will be well capitalised to implement our growth strategy and build on our support services platform in Africa, which already boasts an international client list.

“We have made excellent progress on the ground in structuring our investments to deliver the support services and logistics required by operators in the region.  The recent revenue figures from Ardan underscore our successes and highlight the opportunity available to us, something that has been recognised both by new and existing shareholders and reflected in the appetite for the Fundraising.” He said.

The company has however cautioned that the completion of the Fundraising remains conditional, inter alia, upon the approval of shareholders at a general meeting to be held on 11 August 2014 and upon admission of the new Shares to trading on the AIM market of the London Stock Exchange.