(Alliance News) - Columbus Energy Resources said Monday it has agreed to terms for a new convertible loan agreement with Lind Golad Macro Fund LP to provide access to additional funds for the drilling of Saffron well in Trinidad.
The oil and gas producer said under the agreement, a total of USD4.5 million is available for the company to draw-down, with USD1.5 million tranche being drawn down immediately and two further USD1.5 million tranches being available in the future.
The company said the money will be used to assist with any unplanned additional costs arising from the drilling of Saffron well and to enable Columbus to fast-track the appraisal and development of the Saffron prospect following any discovery.
Also, the funding will help to fast-track planned technical and operational activities on the Weg Naar Zee license in Suriname, the company noted.
Columbus said the agreement effectively replaces the facility entered into in 2016 under which the company has recently made the final repayments of amounts draw-down on December 2016 and October 2017. It made total repayments under this earlier facility of USD3.2 million.
Leo Koot, executive chairman of the company, said: "The company is currently drilling the Saffron well, with operations and costs in line with our previous expectations."
"The company believes that the funding is value accretive for our shareholders as it minimizes equity dilution whilst providing financial flexibility at minimal cost.
Columbus Energy shares were down 6.9% in London at 3.40 pence each on Monday at midday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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