7 October 2021
Phoenix Global Resources plc
("Phoenix" or the "Company")
Additional Funding
Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company, announces an update on its funding arrangements.
As disclosed in the 2021 interim results, Mercuria stated its intention to provide financial support to the Company in order that the Company could continue to operate and service the Company's liabilities as they fall due for the 12-month period from 14 September 2021, the date of the release of the interim results, and agreed to meet the Company's cash needs for this period and not demand repayment of the loans (principal and interest), whilst discussions between the parties to restructure the loans continued.
The Board continues to believe that it will be able to agree the restructure of the existing debt with Mercuria and formalise an agreement for new funding. Whilst these discussions continue and further to the announcement on 23 September 2021, Mercuria has agreed to further increase the bridging facility, which carries interest at US$ LIBOR plus 4% and is not convertible by US$17.5 million to US$67.5 million.
The principal terms remain consistent with the terms of the existing facility and as announced on 23 September, the repayment date for principal and interest was recently extended to 31 December 2021 and the interest payment grace period to 30 September 2021 for the convertible facilities agreement and delay the first repayment date to 31 December 2021. The loans continue to be unsecured. The increased facility will be used to fund the Company's planned work programs.
Related Party Transaction
Mercuria Group is a substantial shareholder of the Company and a related party under the AIM Rules. The increase of the Bridging Facility to US$67.5 million, if aggregated with other transactions carried out between the Company and Mercuria Group, constitutes a related party transaction (the "Transaction") under the AIM Rules. The directors of the Company, except for Daniel Jaeggi (being Mercuria's designated director under the Relationship Agreement between Phoenix and certain Mercuria Group companies), having consulted with the Company's nominated adviser, Shore Capital & Corporate Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.
For further information, please contact:
| Phoenix Global Resources plc | Nigel Duxbury
| T: +44 20 3912 2800
|
| Shore Capital Nominated Adviser and Joint Broker
| Toby Gibbs David Coaten | T: +44 20 7408 4090 |
|
Panmure Gordon Joint Broker |
John Prior Atholl Tweedie |
T: +44 20 7886 2500 |
About Phoenix
Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on both the London Stock Exchange (AIM: PGR) and the Buenos Aires Stock Exchange (BCBA: PGR) and offers its investors an opportunity to invest directly into Argentina's Vaca Muerta shale formation and other unconventional resources. The Company has over 0.9 million licenced working interest acres in Argentina (of which approximately 0.7 million are operated), 18.8 million boe of working interest 2P reserves and average working interest production of 4,549 boepd in 2020. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 0.6 million working interest acres with Vaca Muerta and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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