Kazakhstan-focused oil explorer and producer Jupiter Energy (LON:JPRL, ASX:JPRL) has revealed it is raising US$6.5mln via a convertible loan note issue.
The term of the debt is three years, carries a 12% coupon and has a conversion price of US1.25 a share.
It is being provided by Mid Ocean, Mobile Energy, major shareholder Waterford Petroleum and other private investors.
A US$3mln tranche of the new cash will be used to repay a promissory note provided by Mobile, leaving $US3.305mln to fund remedial work on well J-53 and further testing of J-59.
However, the bulk, around US$2.8mln, is available as “general working capital”.
The group has thus far raised around US$15.5mln issuing convertible notes.