PGR.L Regulatory News (PGR)

4 February 2019 7:00 am

Phoenix Global Resources plc

("Phoenix", "PGR" or the "Company" and together with its subsidiary undertakings the "Group")

Additional Funding

Further to the Company's announcement on 6 December 2018, Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company offering its investors an opportunity to invest directly into Argentina's Vaca Muerta shale formation and other unconventional resources, is pleased to announce additional funding arrangements.

Highlights

· Existing convertible revolving credit facility with Mercuria Energy Netherlands BV, part of the Mercuria Group, increased to US$235 million, providing immediate additional funds of US$50 million (the "Amended Convertible RCF")

· Additional funds will be used to support the first phase of the Group's 2019 business plan

Amended Convertible RCF

The Amended Convertible RCF will provide immediate additional funds of US$50 million and bears interest at a rate of 4% over 3-month US$ LIBOR with a maturity date of 31 December 2021. The Amended Convertible RCF has two tranches, a facility A commitment of US$160 million ("Facility A"), which was entered into in February 2018 and a facility B commitment of US$75 million ("Facility B"). Facility A will be amortised in equal quarterly repayment instalments from 30 June 2019 until maturity with the right to convert all or part of Facility A into additional new ordinary shares of Phoenix at a price of 45 pence per share at any time from 30 June 2018 until 10 business days prior to the maturity date. Facility B will be amortised in equal quarterly repayment instalments from 31 December 2019 until maturity with the right to convert all or part of Facility B into additional new ordinary shares of Phoenix at a price of 28 pence per share at any time from 30 June 2019 until 10 business days prior to the maturity date.

The right to convert Facility B is subject to appropriate shareholder resolutions, in relation to the authority to allot and disapplication of pre-emption rights in relation to such shares, having been approved. The Company intends to propose the relevant resolutions at its annual general meeting to be held this year.

Related Party Transaction

Mercuria Group is a substantial shareholder of the Company and a related party under the AIM Rules. The entering into of the Amended Convertible RCF constitutes a related party transaction (the "Transaction") under the AIM Rules. The directors of the Company, except for the two Mercuria directors (being Mercuria's designated directors under the Relationship Agreement between Phoenix and certain Mercuria Group companies), having consulted with the Company's nominated adviser, Stockdale Securities Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Anuj Sharma, CEO of Phoenix said:

"I am pleased to announce that funding is in place to support the first phase of our 2019 work program, which will allow Phoenix to continue to develop its highly attractive asset base. Management will be providing an update on operational activity towards the end of February."

For further information, please contact:

About Phoenix

Phoenix Global Resources is a London Stock Exchange (AIM: PGR) and Buenos Aires Stock Exchange (BCBA: PGR) listed independent Argentina focused oil and gas exploration and production company. The Company has over 6.3 million licensed working interest acres in Argentina (of which over 5 million are operated), 57.2 million boe of working interest 2P reserves and average production of approximately 9,750 working interest boepd in Q3 2018. Phoenix has significant exposure to the unconventional opportunity in Argentina through its 560,000 working interest acres with Vaca Muerta potential.

The Company's website is www.phoenixglobalresources.com