Last checked at 18 Mar 2010 10:48
18 March 2010
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Extension of existing loan facilities
Lansdowne Oil & Gas plc (AIM: LOGP), the Dublin-based exploration company announces that it has agreed an extension to the terms of certain existing loan facilities.
The Company entered into a loan agreement with each of Kevin Anderson and LC Capital Master Fund Limited ("LC") (Mr Anderson and LC being "the Lenders"), pursuant to which each of the Lenders agreed to provide the Company with a loan facility of up to £500,000 (total facilities of up to £1 million) (the "2007 Facilities").
In February 2009, the Company entered into a further loan agreement with LC pursuant to which LC agreed to provide Lansdowne with a loan facility of up to £500,000 (the "2009 Facility").
The full amount of each of the facilities has been drawn down by Lansdowne. Interest is accruing at the rate of LIBOR plus one per cent. per annum in relation to the 2007 Facilities and at the rate of LIBOR plus two per cent. per annum in relation to the 2009 Facility. All interest shall be paid at the same time as repayment of the loans.
In addition, between September and December 2009, LC advanced a further £270,000 to the Company ("LC Additional Funding").
Repayment of each of the facilities was due on 12 March 2010. The Company is not in a financial position to repay these loans and the Lenders have today agreed to further extend the repayment date for each of the facilities until 12 April 2010 with a view to a further extension until 12 September 2010 subject to satisfaction of certain conditions.
In consideration for the extension to the repayment date for the 2009 Facility, the Company has agreed:
(i) to include the LC Additional Funding of £270,000 within the terms of the 2009 Facility; and
(ii) to grant new security in favour of LC in relation to the LC Additional Funding, such security to be on the same terms, and to rank equally with, the existing security granted by the Company to LC in relation to the 2009 Facility.
The terms of each of the facilities remain the same in all other respects.
The one month extension is intended to allow the Company a period in which to conclude discussions with one of its principal shareholders with a view to that shareholder providing a working capital facility.
A further announcement will follow shortly.
The Directors, other than Mr Lampe, who is interested in the transaction (the 'Independent Directors'), who have consulted with Canaccord Adams Limited, consider the LC Additional Funding and the amendments to the 2009 Facilities to be fair and reasonable insofar as the shareholders of the Company are concerned. In advising the Independent Directors, Canaccord Adams Limited has relied upon their commercial assessment.
Enquiries:
| Lansdowne Oil & Gas plc |
|
| Steve Boldy, Chief Executive | 01224 748480 |
| Canaccord Adams (Nominated Adviser)
|
|
| Jeffrey Auld / Elijah Colby / Henry Fitzgerald-O'Connor | 020 7050 6500 |