Cabot Energy PLC (LON:CAB) told investors that it has agreed to a new funding arrangement with its majority shareholder, High Power Petroleum (H2P), to generate sufficient working capital until the end of this month.
The company is continuing its efforts to land longer-term financing.
The new deal will see H2P accelerate its final payment of US$150,000 to Cabot. The payment represents a transfer of outstanding work commitments owed to the company.
H2P also agreed to accept Cabot shares (918,630 shares priced at 10p each) in return for US$116,666 due under a previous agreement.
"The board appreciates the ongoing support of H2P,” said James Dewar, Cabot’s interim non-executive chairman.
“The company continues to work with the specialist financial advisory firm it has engaged to source Canada asset-level debt financing to ensure full funding to commence the 2019 summer work programme and support the future growth of the company," he added.
“Whilst the board remains confident that the debt finance discussions will result in a successful outcome for the group, no debt commitments have yet been secured. I look forward to providing Cabot's shareholders with further updates regarding these discussions as appropriate."