Victoria Oil & Gas Secures Funding for Cameroon Drilling Program

Friday, June 18, 2021

Victoria Oil & Gas Plc announced that it has entered into a definitive financing agreement with Meridian Capital (HK) to raise maximum gross proceeds of $7.5 million through the issue of unsecured loan notes. The proceeds of the Facility will be utilized for general working capital purposes, including long lead Items for the proposed well on the Matanda license in Cameroon.

Roy Kelly, Chief Executive Officer, commented: “We are delighted and appreciative that our major shareholder is backing our efforts to resolve legacy issues and increase our working capital. The use of such funds includes helping us progress our very prospective Matanda license in which we have a 75% interest prior to state back-in.”

The Facility is comprised of two series of loan notes – A Loan Notes and B Loan Notes. The key terms of the Loan Notes are set out below:

A Loan Notes:

• unsecured loan notes with no conversion rights
• total principal amount of US$3.3 million, fully drawn on signing of the Facility Agreement
• two-year term with early redemption permitted at no additional cost
• interest at 10% per annum accruing daily from the date of issue and compounding monthly

B Loan Notes:

• unsecured convertible loan notes
• total principal amount of US$4.2 million, which can be drawn down in tranches at the Company’s option
• term expires on the second anniversary of the date of the Facility Agreement with early redemption permitted at any time at no additional cost, with Meridian having the ability to convert the outanding B Loan Notes
• interest at 10% per annum accruing daily from the date of issue and compounding monthly
• principal and interest convertible wholly or partially into VOG shares at the Noteholder’s option from the first anniversary of signing the Facility Agreement and on certain other specified events
• conversion price of £0.078 per share (being a 30% premium to the volume weighted average trading price of VOG’s shares as traded on AIM over the 10-day period immediately before the date of entry into the Facility Agreement)
• draw down conditional on The Takeover Panel (“Panel”) agreeing to a waiver of Rule 9 of the Takeover Code (“Code”) and independent shareholder approval being obtained (see below).

For the full Victoria Oil & Gas release, click here.

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