Trafigura Acquires a 6% Stake in President Energy
International commodity trading group Trafigura has acquired a stake in AIM-listed E&P company President Energy Plc pursuant to a subscription agreement to raise up to US$10 million. Under the terms of the agreement, Trafigura will make an an initial US$4 million subscription to purchase approximately 76 million new ordinary shares of the Company at a price of 4.04 pence per share, thereby acquiring an initial 6.09% stake. Additionally, Trafigura has been granted the option to make further subscriptions of up to US$6 million through the issuance of additional new shares at a price of 4.65 pence per share. Previously, in late July 2019, President Energy had entered into an arrangement with Trafigura to sell part of its production from its assets in Rio Negro Province in Argentina. Separately, Trafigura also agreed to make certain advances to President Energy repayable on commercial terms. President Energy will utilize the funds raised through the share subscription to pay down the advances made by Trafigura. The Leeds-based company is currently focused on exploration and production activities in Argentina and Paraguay, and also owns onshore producing assets in Louisiana in the United States.