Yorkville Advisors, the US-based alternative investment manager, has entered into a GBP7m standby equity distribution agreement on behalf of one of its funds with AIM listed Ascent Resources.
Ascent Resources is an independent, multi-project, European focused oil and gas exploration and production company.
The transaction also included a promissory note for the amount of GBP2.1m. The deal was advised out of London.
Pursuant to the terms of the agreement, Ascent Resources has the discretion to withdraw funds of up to GBP7m in tranches in exchange for the issue of new equity for up to 36 months.
Simon Cunningham, executive finance director of Ascent Resources, says: “We are pleased to have secured the short term debt funding to commence drilling in Slovenia. Yorkville has provided similar funding arrangements to Gulf Keystone Petroleum, Xcite Energy and San Leon Energy amongst others and this facility has allowed us to minimise dilution whilst funding in the near term our work programme.”
Brian Kinane, managing director, Yorkville Advisors UK, adds: “We are pleased we can support Ascent Resources by providing financing for the development of its Petosvci field. We look forward to working with Ascent Resources and its management team to help them achieve their goals.”
