(Alliance News) - Bahamas Petroleum Co PLC on Thursday said it has entered into an unsecured convertible loan note facility for up to GBP8 million.
The exploration company said the 0% interest loan was granted by a Bahamian-based institutional family-office investor. The company said that 90% of the amount is immediately available for draw-down, adding that the first GBP2.4 million tranche of the facility is unconditional and immediately available.
The GBP2.4 million amount will go towards the drilling of the company's wholly-owned exploration well in the Bahamas Perseverance No 1 well, expected to commence in April 2020.
Bahamas Petroleum said it will continue to evaluate farm-in options as part of its overall risk mitigation strategy which could further expand its available funding resources.
"Today's facility affords us greater overall funding availability, and a high degree of financial flexibility so that we can respond as may be needed to real-time drilling results. Critically, with this facility, shareholders can take greater comfort that the well can be delivered if we were to go it alone, or if we were to choose to drill with a partner," said Chief Executive Simon Potter.
The stock was trading 17% higher at 3.97 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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