Secured Financing Facility Extension and Expansion
Gulfsands Petroleum plc (“Gulfsands” or the “Company“, the “Group“), the oil and gas company focused on the Middle East region, is pleased to announce that it has agreed an extension and expansion of its existing Secured Term Financing Facility (the “Facility“) with its major shareholders, Waterford Finance and Investment Limited and Blake Holdings Limited (together the “Major Shareholders” and “Lenders“).
The Facility, which was due to mature on 31st December 2021, has been extended to 31st December 2023 and has been expanded by the addition of new drawdown tranches of up to £6.5 million to cover expected General and Administrative costs for the next two years and some potential business development activity.
The Facility remains convertible by the Lenders, at any time, into new Ordinary Shares at a price of 5 pence per Ordinary Share. The Company also has the ability to convert the Facility into new ordinary shares, absent an event of default, at maturity, at a now fixed price of also 5 pence per Ordinary Share.
Gulfsands’ strategy continues to be to protect and preserve its rights in respect of its world class Block 26 asset in Syria, which remains in force majeure due to UK sanctions, and to prepare for a return when circumstances allow. It continues to work with the international community to facilitate such a return. The Company is also active in seeking business development opportunities in the broader Middle East and broader MENA region.
Gulfsands’ shares continue to trade through a series of periodic auctions via the Asset Match trading platform. The next auction is due to close at 4pm on 13th January 2022.
Gulfsands’ Managing Director Mr. John Bell commented “We are delighted to receive the continued support of our major shareholders through the extension and expansion of the Facility. This gives Gulfsands a further two years to both develop its regional presence through business development as well as working with the international community to enable a return to operations in Syria.”
For further information, please refer to the Company’s website at www.gulfsands.com or contact:
|Gulfsands Petroleum Plc||+44 (0)20 3929 9476|
|John Bell, Managing Director|
Andrew Morris, Finance Director
Michael Kroupeev, Non-Executive Chairman
|Camarco||+44 (0)20 3757 4983|
|Billy Clegg / Owen Roberts|
Certain statements included herein constitute “forward-looking statements” concerning the Company within the meaning of applicable securities legislation. These forward-looking statements are based on certain assumptions made by Gulfsands and as such are not a guarantee of future performance. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Gulfsands’ ability to control or estimate precisely, such as general economic and market conditions in various countries and regions, political risks, environmental and physical risks, legislative, fiscal and regulatory developments, drilling and production results, reserves estimates, changes in demand for Gulfsands’ products, increased costs of production or price fluctuations in crude oil and natural gas. Gulfsands cannot give any assurance that such forward-looking statements will prove to be correct. Gulfsands does not undertake any obligation to update or revise publicly any forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except as required by applicable laws.