Shares of Challenger Energy Group have seen a rise following the announcement that the company has successfully secured a loan to repay a previous funding facility. This comes as positive news for the London-listed oil-and-gas company.
Positive Market Response
At 0718 GMT, shares were up 0.02 pence, showing a significant increase of 35% at 0.07 pence. The market’s response indicates confidence in the company’s ability to navigate through current challenges.
Ensuring Sufficient Funds
Challenger Energy Group has obtained a short-term bridge loan of £346,500 ($420,270) which will be used to permanently eliminate the previous loan. This ensures that the company has the necessary funds to bridge them through the current period.
Focus on Asset Sales and Farm-out
The loan will be repaid with the proceeds from either the completion of the Cory Moruga asset sale transaction in Trinidad or the completion of a farm-out of its assets in Uruguay. This strategic approach allows the company to explore multiple avenues for repayment.
Addressing Shareholder Concerns
Chief Executive Eytan Uliel expressed that this transaction will address the concerns of shareholders regarding potential future dilution from conversions and facility draw-downs. With the removal of these concerns, shareholders can now look ahead with greater confidence.