30th Jun 2015 09:42
LONDON (Alliance News) - Gulfsands Petroleum Ltd on Tuesday said it is planning to raise GBP22 million via a placing and open offer to pay back its Arawak loan facility and to repay its creditors and provide working capital.
Gulfsands said Arawak Energy Bermuda Ltd on Monday said it has entered into an assignment deal with Weighbridge Trust Ltd to acquire the Gulfsands loan facility. Gulfsands intends to repay that USD10 million facility once its fundraising is complete.
Gulfsands did not provide any details on the pricing of its offering.
But Waterford Finance and Investment Ltd, for which Weighbridge is acting on behalf, has committed to subscribe to at least USD11 million of the Gulfsands fundraising.
"We continue to make progress in restructuring the business by seeking to farm out interests in our assets in Morocco, Tunisia and Colombia to ensure the various projects are suitably financed to meet their contract obligations. We will continue to retain our interest in Block 26 Syria. We expect, following the assignment of the loan facility to be able to draw down some limited interim funding to sustain the business prior to the fundraising," said Gulfsands Chairman Alastair Beardsall.
Shares in Gulfsands were down 3.8% to 10.1 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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