Gulfsands Petroleum PLC Update on Funding and Assignment of Loan Facility (5836R)
June 30 2015 - 2:01AM
UK Regulatory
TIDMGPX
RNS Number : 5836R
Gulfsands Petroleum PLC
30 June 2015
Gulfsands Petroleum Plc
Financing Update and Assignment of Arawak Loan Facility
30 June 2015
Gulfsands Petroleum Plc ("Gulfsands" or the "Company"), the AIM
listed oil and gas company (AIM:GPX) with activities in Syria,
Morocco, Tunisia and Colombia, is pleased to provide the following
update with regard to a proposed financing and the assignment of
the US$20 million Facility Agreement with Arawak Energy Bermuda
Limited ("Arawak Loan Facility").
Proposed Financing
The Company continues to reduce the cost exposure to its
exploration assets via a farmout/divestment process and the
underlying general and administrative expenses. However, the
Company has undertaken to repay the Arawak Loan Facility and
requires additional funding to repay creditors and for working
capital purposes.
The Company is preparing to raise up to US$22 million, the
majority of which will be via a placing to institutional investors
("Placing") with a smaller element being an open offer to all
shareholders ("Open Offer") (together the "Fundraising"). The
Company expects to post a circular to shareholders during July 2015
with details of the Fundraising and a notice of an extraordinary
meeting to approve the resolutions to facilitate the
Fundraising.
Assignment of the Arawak Facility
In November 2014 the Company entered into a Strategic
Cooperation Agreement with Arawak International Limited ("Arawak
Cooperation Agreement") and the Arawak Loan Facility, and has drawn
down US$10 million under the Arawak Loan Facility. In January 2015,
Arawak International Limited terminated the Arawak Cooperation
Agreement and Arawak Energy Bermuda Limited advised the Company
that they would not advance any further funds under the Arawak Loan
Facility and that it would be seeking repayment of the
facility.
On 29 June 2015 the Company was advised by Arawak Energy Bermuda
Limited that it had entered into an assignment agreement
("Assignment") with Weighbridge Trust Limited ("Weighbridge"),
which is acting as agent for Waterford Finance and Investment
Limited ("Waterford") and Mr. Richard Griffiths (and companies
owned and controlled by him) ("Griffiths"). Under the Assignment,
Weighbridge will acquire the Arawak Loan Facility for the benefit
of Waterford and Griffiths. It remains the intention of the Company
to repay the Arawak Loan Facility as soon as the Fundraising is
completed. Waterford and Griffiths, as existing shareholders in the
Company, acquired the Arawak Loan Facility on this basis, and they
have given a firm undertaking to subscribe for up to US$11 million
of new shares in Gulfsands as part of the proposed Fundraising to
facilitate repayment of the facility in full.
Gulfsands Chairman, Alastair Beardsall, said:
"We continue to make progress in restructuring the business by
seeking to farm out interests in our assets in Morocco, Tunisia and
Colombia to ensure the various projects are suitably financed to
meet their contract obligations. We will continue to retain our
interest in Block 26 Syria. We expect, following the assignment of
the loan facility to be able to draw down some limited interim
funding to sustain the business prior to the fundraising."
Gulfsands Petroleum Plc
Alastair Beardsall, Chairman +44 (0)20 7024 2130
Cantor Fitzgerald Europe
Sarah Wharry
David Porter +44 (0)20 7894 7000
First Energy Capital
Jonathan Wright +44 (0)20 7448 0220
This information is provided by RNS
The company news service from the London Stock Exchange
END
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