Independent Oil and Gas (LON:IOG) has secured funding for an appraisal well on the Skipper field in the North Sea.
GE Oil & Gas (£2mln) and London Oil and Gas (£2.75mln) have agreed loans of £4.75mln in total with warrants.
IOG still needs to be recognised as operator of the licence area and to be granted an extension to the licence, but with the finance now arranged this is expected to fall in to place with the well spudded late January or early February 2016.
An agreement with a major service contractor has now been executed with significant deferral, IOG said, while contract negotiations on the Skipper rig are set to be concluded shortly.
IOG added it had also agreed a well management contract with AGR that will see fees paid in cash and shares.
Weatherford Technical Services, meanwhile, has also extended the maturity date for its outstanding loan of approximately US$2mln until 30 December.
Mark Routh, Independent’s chief executive said: "We are delighted to have secured this loan funding along with very significant contractor deferrals, demonstrating industry's support for the Skipper project.
“Subject to completion of certain contracts we are now fully funded to drill this transformational well early in 2016 and look forward to reverting with the final details shortly."
Shares jumped 36% to 7.65p.