Kazakhstan-focused Jupiter Energy (LON:JPRL, ASX:JPR) has agreed a second unsecured loan with Mobile Energy.
Totalling US$3mln it can be drawn down in three equal tranches and has a coupon of 15%.
Its loans with Mobile now add up to US$6mln, and the additional funding will give Kazakhstan focused Jupiter breathing space to raise a minimum US$20mln via the debt or equity markets.
“The company is currently in discussions with a number of parties regarding a range of long-term funding options including convertible notes and/or bank debt and will update the market in due course on progress with these negotiations,” Jupiter told investors.
The cash injection will be used to fund field operations, including the testing of its latest well, J-59.
The previous well, J-58, which was drilled on the eastern extension to the current area of activity, produced at a sustained rate of 1,300 barrels a day from T2B horizon over a 90-day test period.
Its J-50, 51 and 52 wells, which are operating under a trial production licence, have a combined output 1,400 barrels a day.
The company’s Block 31 permit is in Kazakhstan’s highly productive Mangistau Basin.