(Alliance News) - Anglo African Oil & Gas PLC on Tuesday said it is in the process of preparing the security to be granted to Zenith Energy as part of a loan agreement between the two companies.
Earlier in January, oil & gas producer Zenith agreed to advance a GBP250,000 loan to Anglo African in order to help with Anglo African's cashflow position.
Anglo-African said that as part of the loan agreement, it is required to re-register Anglo African Oil & Gas Congo SAU as a "multi shareholder" company in the Republic of the Congo. The company said that as soon as this is done, it is "confident" that it will be able to draw the full amount.
Anglo African added that in the absence of the loan from Zenith, and following the receipt of payment from Forum Energy Services Ltd, it expects to have sufficient cash to continue trading until the end of March.
On January 20, Anglo African said that it would get GBP361,376 from oilfield products company Forum Energy, as its share from the sale of 84.0 million shares at 0.5 pence each.
Anglo African stock was trading flat at 0.38 pence each on Tuesday afternoon in London. Shares in Zenith were down 1.3% ar 1.85p.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.