part of Todays RNS20 Feb 2020 09:35
Simon Potter, Chief Executive Officer, commented:
"We continue to make rapid progress toward the drilling of Perseverance #1, our first exploration well in The Bahamas, expected to commence in April 2020 .
Since mid-2019 we have progressively been implementing a coordinated funding strategy, with a view to ensuring we have access to the funds necessary for drilling, as and when we need them. This measured approach means that we have now secured a funding package with considerably less overall dilution to shareholder equity than most commentators expected would be required. Moreover, through this process we have consistently put the interests of our shareholders first - for example, in October 2019 we provided our existing shareholders with the first option to subscribe for additional shares at a substantial discount to the then prevailing (and the current) share price.
Today's facility affords us greater overall funding availability, and a high degree of financial flexibility so that we can respond as may be needed to real-time drilling results. We will see some immediate cash inflow to help manage the timing of cash-flow needs in advance of drilling (for example for long-lead/critical path items and advance credit payments required by service providers). Thereafter, the remaining funds are committed, and available if the Company elects to draw on the facility as we progress through drilling.
At the same time, we continue to consider several farm-in options, with a view to further strategically enhancing the overall financial and operating capacity of the Company."
Critically, with this Facility and the Conditional Convertible Loan Note, shareholders can take greater comfort that the well can be delivered if we were to 'go it alone', or if we were to choose to drill with a partner. The next few months will thus continue to be both a busy and exciting time for our Company. "
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