17th Aug 2018 09:55
LONDON (Alliance News) - Independent Oil & Gas PLC said Friday it agreed a new loan facility to fund its 100%-owned Harvey appraisal well.
The company said it signed a non-binding term sheet for a GBP15 million non-convertible loan facility with London Oil & Gas Ltd. The loan will carry an interest of LIBOR plus 9% per year and is repayable within 36 months from the date of drawdown.
Upon signing of the loan facility, the company said it will issue 20 million warrants exercisable at 32.18 pence each to London Oil & Gas. The exercisable price represents a 10% premium to the company's closing price on Thursday.
Independent Oil & Gas shares were trading 5.4% higher at 30.82p each on Friday.
Independent Oil & Gas added that advanced preparation work at the well, located in the UK North Sea, is currently ongoing with spudding expected in December.
"Well management, rig and services discussions are very well advanced, with contracts to be agreed in coming weeks," the company added.
Chief Executive Officer Abdrew Hockey said that a successful Harvey appraisal well could "nearly double" the company's proven reserves in the North Sea.
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