27th Feb 2014 13:43
LONDON (Alliance News) - Eland Oil & Gas PLC Thursday said it has extended its USD22 million loan facility with Standard Chartered Bank and has exercised options to raise GBP6 million at 100 pence per share.
The oil and gas exploration and development company said it extended the loan facility for a further twelve months to allow its joint venture partner Elcrest Energy Nigeria Ltd to meet its general working capital requirements, including in relation to its major OML 40 site, offshore Nigeria.
The company noted that it is a condition of the facility that first oil has been achieved at the OML 30 site.
First oil means the production of crude oil at an average rate of 2,000 barrels of oil per day for a cumulative 30-day period in a 90-day period following the restart of production at the site.
Eland said it has also exercised a part of the Solstice Option Agreement and the Helios Option Agreement, raising GBP6.0 million in total which will be used for general working capital and corporate purposes.
Eland Oil & Gas shares were up 1.4% to 101.38 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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