Shares in West Perth-based Liquefied Natural Gas Ltd rose almost 5 per cent today following the company signing an equity subscription agreement with owner of LNG transportation Golar LNG to raise $11.
Shares in West Perth-based Liquefied Natural Gas Ltd rose almost 5 per cent today following the company signing an equity subscription agreement with owner of LNG transportation Golar LNG to raise $11.5 million.
At market close, LNG's share price rose 3 cents to 73 cents.
Golar LNG will ultimately hold 19.83 per cent and they will become the company's largest shareholder. Golar have appointed their CEO Gary Smith to the company's board of directors.
Below is the full announcement:
The Directors of Liquefied Natural Gas Limited (the Company), are pleased to announce that the company has signed an Equity Subscription Agreement with Golar LNG to subscribe for 23 million shares at A$0.50 cents to raise A$11.5 million, of which 13,950,000 are unconditional and 9,050,000 shares are subject to shareholder approval. Golar LNG will ultimately hold 19.83% and they will become the Company's largest shareholder. Golar have appointed their CEO Mr Gary Smith to the Company's Board of Directors.
Golar LNG (www.golarlng.com) is the world's largest independent owner of LNG
transportation with over 30 years experience in the Global LNG industry. They are the only shipping company dedicated exclusively to LNG transportation and are recognized market leaders in transportation. Golar LNG is listed on the OSLO and NASDAQ Stock Exchanges and its major shareholder is Mr John Fredriksen.
Mr Smith has an extensive background in the petroleum industry. Most recently Mr Smith worked for STASCO (Shell Trading & Shipping Co) in London in the position of General Manager Commercial Shipping. In this position he worked closely with existing LNG projects and LNG trading activities and supported the development of several new LNG projects. Mr Smith also served as President and Director of SIGGTO (Society of
International Gas Tanker & Terminal Operators) during the period from 2002 to 2005.
Golar CEO Mr Gary Smith said that "the innovative strategies being pursued by Liquefied Natural Gas Limited will enable the joint development of a number of new LNG project opportunities enhancing Golar's ambitions to expand further into the LNG logistical chain."
Liquefied Natural Gas Limited (www.LNGlimited.com.au) is an Australian publicly listed company (ASX Code LNG) that brings a new concept to the international energy market. It has been formed to act as an energy link between previously discovered but non-commercial gas reserves and potential new energy markets identified by the Company.
Liquefied Natural Gas Limited Managing Director, Mr Maurice Brand, said that the Company was delighted to welcome Golar LNG as a major shareholder and Gary as a Director.
"The LNG Board believes that the financial strength of Golar, with total assets of US$2.2 billion, and its associated companies, together with the additional experience Gary brings to the Company, augers well for the Company's future. In addition it will enable the joint
development of a number of new LNG project opportunities" said Mr Brand.
