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Dacian is a newly formed Romanian oil and natural gas production company operating over 40 late life, onshore fields with nearly 100 producing wells. The completion of the Dacian transaction, our first cornerstone investment after the return to self-management, demonstrates the ability of LMS to execute its co-investment strategy.

The Company invested £6.7 million ($9.1 million) in Dacian for senior secured loan notes with a 14% per annum coupon and a 32% equity stake in the company, and also led the co-investment group that raised the additional capital allowing Dacian to complete

In November 2021 the acquisition of these oil and natural gas fields from OMV Petrom. Dacian is a business that is operationally cash flow positive from day one and has a business plan to more than double its current level of oil and natural gas production, primarily through a series of intervention and workover projects on existing wells.

The investment, through its attractive entry pricing and the potential for Dacian to grow production and thereby its earnings and cash flow, has the potential to meet and exceed our target investment returns.