Tórshavn, Faroe Islands, 2019-07-23 (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces that it has signed a unsecured Bridge loan facility for up to DKK 5 million from one of the shareholders and a standstill agreement with LOG.
Bridge Loan facility
A DKK 5 million unsecured loan facility has been made available by one of the Company's existing shareholders, subject to certain conditions, providing Atlantic Petroleum with additional working capital until payments from the Orlando Fiels are received.
- The drawdown facility provides DKK 2 million immediately on the completion of the loan agreement;
- a further DKK 3 million will be available after the EGM set to be held at 25th July 2019;
- the facility is available for 12-months after completion of the loan agreement; and
- repayment is due, at the latest, 18 months after completion of the loan agreement.
LOG Standstill
In support of the Bridge Loan and the Company's general refinancing efforts, London Oil and Gas Limited (LOG) have enter a Standstill Agreement until 30th November 2019. LOG will retain the right to convert the existing Convertible Loan Facility at the agreed strike price during the period of the Standstill.
The terms of the existing LOG convertible loan facility are restrictive on the Company’s ability to seek alternate funding. However, this restriction has been lifted by LOG’s administrators and they continue to be supportive of working toward a common goal of restructuring the company's debt.
As a condition of the Standstill Agreement, LOG has been given the right to a Board Observer. The LOG observer will not be entitled to any fees or voting rights.
Standstill with Betri
In support of the Bridge Loan and the Company's general refinancing efforts, Betri and Atlantic Petroleum have taken up negotiations regarding a Standstill Agreement until 31st December 2019.
Mark T. Højgaard, CEO of Atlantic Petroleum said:
“We look forward to resolving the creditor issues which have burden the Company over the past months and focus on a larger refinancing effort to improve the financial position of the Group.
This Bridge Loan will allow Atlantic Petroleum to manage its day to day working capital needs until the first payments of Orlando are received, at which point Atlantic Petroleum expects to secure a more sustainable capital structure to preserve value for its shareholders, including a new debt restructuring.
Given the Group's current financial position, we think that this solution is the best way forward for Atlantic Petroleum, and its shareholders.”
Atlantic Petroleum in brief:
Atlantic Petroleum participates in oil and gas joint ventures with reputable, international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe Islands, and the Company currently has subsidiaries and offices in the UK. Atlantic Petroleum’s shares are listed on NASDAQ OMX Copenhagen and on the Oslo Stock Exchange.
Further Details:
Further details can be obtained from Mark T. Højgaard, (markh@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
Announcement no.: 14/2019
Issued: 23-07-2019
P/F Atlantic Petroleum
Yviri við Strond 4
P.O.Box 1228
FO-110 Torshavn
Faroe Islands
Website: www.petroleum.fo