Columbus Energy Res - Second drawdown under funding Agreement
("Columbus" or the "Company")
Second drawdown of
Columbus, the oil and gas producer and explorer with operations in
As announced on
· assist with costs arising from the drilling of the Saffron well in
· enable Columbus to fast-track the appraisal and development of the Saffron prospect following any discovery; and
· provide the resources to fast-track planned technical and operational activities on the Weg Naar Zee licence in Suriname, including development of the field following the extended well tests.
Further to the announcement of the Company on
The main terms of Tranche 2 are set out below.
The Company does not expect to drawdown any further amounts under the Agreement in either 2019 or 2020.
"The Company is currently drilling the Saffron well. As with any drilling campaign, it is prudent to have sufficient cash resources to complete the well safely and efficiently and without compromising the objectives of the well. Drawing down Tranche 2 under the Agreement allows us to do that and also allows us to monetise it in the event of a successful discovery. I would stress again that the Company remains committed to finding the lowest cost options for appraising and developing its assets and looks forward to updating the market as to the results of the Saffron well in due course."
The main terms Tranche 2 are as follows:
· Repayment over a 24-month period.
· Repayment, at Company's option, either in cash or Company shares (or both). The monthly cash payment for Tranche 2 will be
· The Funder has the right to convert any loans outstanding into Company shares at a fixed share price equal to 130% of the Company's 20 day VWAP prior to signature of the Agreement (approximately 4.4p) (the "Conversion Price").
· Company has the right to buy-back the outstanding balances (the "Buy-Back") at any stage during the term of the loan without penalty, although the Funder has the right to convert up to 25% of the Buy-Back into Company shares at the lower of Repayment Price or the Conversion Price.
· No up-front commitment fee or other fees are payable.
· For Tranche 2, the Funder has received 16,861,207 share options, which may be exercised within 60 months at a share price equal to 150% of the 20 day VWAP immediately prior to drawdown. For Tranche 2, the exercise price would be approximately 5.1p).
· The Funder has the right, upon certain terms and conditions being met, to re-invest up to 50% of the Tranche 2 amount on similar terms and conditions.
· No additional Collateral Shares or security other than that already granted under Tranche 1.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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Financial Adviser and Broker
+44 (0)20 3005 5000
+44 (0)20 7628 3396
Public and Investor Relations
Mark Antelme /
+44 (0) 20 8434 2643
Notes to Editors:
Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.
The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across
This information is provided by RNS, the news service of the
Quick facts: Columbus Energy Resources PLC
Market Cap: £19.93 m
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