The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact Steve Boldy, the Chief Executive Officer of the Company (responsible for arranging release of this announcement).
Lansdowne Oil & Gas plc
GBP 350,000 Loan Agreement Entered into with Major Shareholder Brandon Hill Capital Limited
29 June 2017
Lansdowne Oil & Gas plc ("Lansdowne" or "the Company") is pleased to confirm that on 28 June 2017 the Company entered into a Loan Agreement ("Loan") for GBP 350,000 with its major shareholder Brandon Hill Capital Limited.
Under the Agreement Lansdowne is able to draw down funds at its discretion in part or in full. A coupon of 12% per annum will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspect to the loan and no fee owed to Brandon Hill Capital for providing the funds. The Loan is unsecured and is repayable in full on 28 June 2018.
Lansdowne Oil & Gas has already received an initial GBP 100,000 under this agreement.
Brandon Hill is a Significant Shareholder in Lansdowne and therefore the Loan is considered a related party transaction for the purposes of the AIM Rules. The Directors of Lansdowne consider, having consulted with the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
Steve Boldy, CEO commented:
"We would like to thank Brandon Hill Capital for its continued support. In the current environment for junior oil & gas companies, we believe the terms of the Loan are very attractive and a testament to the potential offered by Lansdowne and its flagship Barryroe project.
Through a variety of cost cutting measures, Lansdowne's monthly burn rate has been reduced to circa GBP 30,000 per calendar month. With this Facility in place, callable at Lansdowne's request, the Company now has sufficient access to capital to fund its current operations until the end of Q1 2018.
Whilst we acknowledge the farm out of the Company's Barryroe asset has taken longer than originally envisaged, the Company remains heartened by the level of interest it continues to receive in the farm-out process and looks forward to updating all shareholders on progress in due course."
For further information please contact:
Lansdowne Oil & Gas plc Steve Boldy |
+353 1 495 9259 |
Cantor Fitzgerald Europe Nominated Advisor and Joint Broker Sarah Wharry David Porter |
+44 (0) 20 7894 7000 |
Beaufort Securities Joint Broker Jon Bellis |
+44 (0)20 7382 8300 |
