Finance News Oil & Gas

Block extends $2m loan

Block Energy plc has agreed an 18-month extension to its US$2 million loan for its Georgia assets.

WARRANTS

The extension to February 2026 will provide additional headroom for reinvesting cashflows into the company’s portfolio.

The loan figure combines the original $1.06m loan from February 2023 and a $940,000 increase in May 2023. 

The terms remain substantially the same, with a 16% interest.

Each lender will receive further warrants, valid until 30 July 2027, at an exercise price of 0.85 pence per ordinary share.

The number of new warrants issued to each lender corresponds to an exercise value equal to 50% of their respective loan commitment.

A total 91,185,133 new warrants will be issued to lenders as part of the extension.

Chief executive officer Paul Haywood previously lent $115,000 in aggregate and will receive 5,243,145 new warrants.

Commercial manager and PDMR Fergus Robson lent $20,000, via Covalent Commercial Ltd, and will receive 911,851 new warrants.