(Alliance News) - Columbus Energy Resources PLC said Wednesday it has made a second drawdown from its convertible loan agreement with Lind Global Macro Fund LP.
In early November, the oil and gas producer inked the USD4.5 million agreement, with a USD1.5 million tranche being drawn down immediately and two further USD1.5 million tranches being available in the future.
This second tranche, meaning the company has drawn on USD3.0 million so far, is to cover the drilling at its Saffron well in Trinidad - which has encountered hydrocarbon bearing zones within the tertiary target.
Chief Executive Leo Koot said: "The company is currently drilling the Saffron well. As with any drilling campaign, it is prudent to have sufficient cash resources to complete the well safely and efficiently and without compromising the objectives of the well. Drawing down Tranche 2 under the agreement allows us to do that and also allows us to monetise it in the event of a successful discovery.
"I would stress again that the company remains committed to finding the lowest cost options for appraising and developing its assets and looks forward to updating the market as to the results of the Saffron well in due course."
Columbus does not expect to make the final drawdown in 2020.
Shares in Columbus Energy Resources were 4.8% higher in London on Wednesday at 3.30 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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