RE: 30 days27 Feb 2024 13:34
As disclosed on 14 November 2019, as part of the RTO arrangements, SundaGas agreed to provide an unsecured loan facility to Baron of up to £200,000 to cover certain costs related to the RTO. As the external RTO costs to date have been minimal, this loan facility has not been utilised and will now be withdrawn.
In order for Baron to exercise its entitlement in SundaGas TLS, the Company will be required to reimburse its share of costs incurred since the Chuditch PSC was signed on 8 November 2019, including the Bank Guarantee, which were planned to be repaid from the proceeds of the RTO fundraising. Such costs have been carried by SundaGas since the Chuditch PSC was signed and, under the terms of a Carry Agreement, SundaGas has agreed to continue to carry Baron for its share of such additional costs attributable to its pending interest in SundaGas TLS until 26 April 2020, or such later date as shall be mutually agreed, when costs accruing to that date will become payable. Thereafter, subject to completion of payment for such costs, Baron will maintain its interest by continuing to pay one third of the costs incurred on the Chuditch PSC by way of additional investment into SundaGas TLS. Based on the SundaGas forward budget for Q1 2020, Baron estimates that the total monies that will fall due on 26 April 2020 under the Carry Agreement will be approximately US$500,000. VT think that loan would of ended.