(Alliance News) - Lansdowne Oil & Gas PLC on Wednesday said it has secured a GBP300,000 loan from two major shareholders, Lampe Conway & Co LLC and Brandon Hill Capital Ltd.
The loan, which is repayable on July 25, 2020, is split equally between the two shareholders. A coupon of 12% per annum will be applied only to those funds drawn by the company.
"Given the significant softening in our share price over the last few months, in part as a result of delays with respect to the award of a new site survey permit over the Barryroe licence and the delay in delivery of funds due under the farm-out to APEC Energy Enterprises Ltd, the board concluded a new equity fundraising at this time would not be in the interest of all shareholders," said Lansdowne Chief Executive Steve Boldy.
"With the statutory public consultation period relating to the site survey period having recently concluded, the board remains optimistic that upon receipt of regulatory consents and financing, the Well Site Survey Operations will take place in Q3 2019, ahead of the previously outlined drilling campaign," Boldy added.
Providence Resources PLC, which alongside Lansdowne owns an interest in Barryroe project, earlier in June said it has agreed an extension to the deadline for payment of a loan related to a farm-out on the Barryroe project with APEC.
Providence, alongside Lansdowne, in March 2018 sold a 50% interest in the project to Chinese consortium APEC, which, amongst other commitments, was to provide a USD9 million loan to cover work costs.
The APEC loan was originally due in the fourth quarter of 2018, and earlier June some amendments were agreed setting a date of June 14 for payment. However, delays over processing with APEC investors mean APEC has asked for an extension to July 5, which has been granted.
Assuming the farm-out is completed, APEC will hold 50% of Barryroe, Providence 40% and Lansdowne 10%.
Shares in Lansdowne were trading 14% higher at 1.23 pence each on Wednesday morning. Providence was up 2.4% at 8.24p.