(Alliance News) - Bahamas Petroleum Co PLC on Tuesday said it has agreed to double the size of an existing convertible loan note.
The zero-coupon, second-ranking, unsecured loan note was previously valued at GBP8 million, but this has now been increased to GBP16 million.
Some 90% of the facility is yet to be drawn, Bahamas said, with the loan provided by an institutional family-office investor in the Bahamas.
Chief Executive Simon Potter said: "Materially increasing the size of the facility with the same investor on an immediate, unconditional basis is, in and of itself, a tremendous boost for the project. Moreover, for the company to achieve this in the face of the decline in oil price and the global adverse impact of the Covid-19 virus is an enormous vote of confidence in the company, our planned drilling activity and the robust nature of our prospects.
"Notwithstanding current turmoil in the world's financial markets and the disruption associated with the Covid-19 virus, including interruption to our drilling schedule, the project team remains together, focused and intent on delivery. I look forward to updating shareholders further over the coming weeks."
Shares closed 4.5% lower in London on Tuesday at 2.00 pence each.
By George Collard; georgecollard@alliancenews.com
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