Block Energy plc has increased its US$1.06 million loan, secured in February 2023, by $940,000 for its oil and gas operations in Georgia.
USES
The funds will be used to maintain scheduled liftings and accelerate procurement of materials to drill its next project I wells, the first of which is KRT-45Z.
DIRECTORS’ DEALINGS
Under the deal the company may borrow an additional contingent amount of up to $2m during the term of the loan.
Block has also signed a revised loan agreement, with the changes reflecting the increased amount and allowing existing and new lenders to participate in the current tranche.
Chief executive officer Paul Haywood provided a further $25,000 in addition to the $90,000 already committed.
Chief operating officer and former board director Ken Seymour gave a further $25,000 in addition to the $100,000 already committed.
TERMS
Each lender will receive warrants exercisable at 1.92p per ordinary share during the three years from the original agreement of 2 February 2023.
The number of warrants to be issued to lenders as part of the $940,000 loan in aggregate is 19,352,394.
This follows the number of warrants issued to each lender corresponding to an exercise value equal to 50% of their respective loan commitment.
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