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Anglo African Oil & Gas to assess multiple funding options in competitive process

It has had improved terms from EHGOS as multiple alternative proposals also emerged.
oil and gas operations
The aim it is to fund work at the Tilapia field in the Republic of Congo

Anglo African Oil & Gas PLC (LON:AAOG) has highlighted to investors that it has received multiple new funding offers, and, a competitive process is now underway.

The company last week announced that it had signed a term sheet with European High Growth Opportunities Securitization Fund (EHGOS), which has subsequently improved its proposal.

READ: Anglo African Oil & Gas drums up cash to access 'potentially prolific' layer

It highlighted that the intention is to establish an optimal financing structure that will allow it to re-enter the TLP-103C well in order to produce from the Djeno reservoir.

The company intends to avoid the issuance of convertible loan notes – or similar structures –as such arrangements create uncertainty around the potential dilutive effects to existing shareholders.

“The board of the company felt it was more appropriate to avoid this risk by having certainty over the number of shares issued, rather than the total proceeds received, and therefore entered into the Term Sheet with EHGOS,” AAOG said in a statement.

It added: “Investors are reminded that under this facility if the share price increases above the benchmark price then the company will receive proceeds exceeding those nominally received pursuant to the share subscription.”

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