Oil Basins strikes new Institutional Funding Agreement

THE BOWSER: Oil Basins (ASX: OBL) has entered into a funding agreement with The Australian Special Opportunity Fund LP, a New York-based institutional investor managed by The Lind Partners, LLC for a total funding commitment of up to $7.25 million.

Under the agreement with Lind, OBL will receive $350,000 funds upon execution in the form of $275,000 convertible security and $75,000 as first equity tranche prepayment.

The agreement has a term of up to 2 years, made up of:

A six per cent coupon convertible security in the face amount of $300,000, and

Monthly equity purchases in the amount of $100,000 which can be increased up to $300,000 per month by mutual consent (up to an aggregate of $6.975 million).

Funds will provide working capital and can be utilised for development of the company’s projects and exploration permits in both onshore and offshore
Australia.

The company will be required to satisfy each monthly equity purchase by issuing ordinary fully paid shares to Lind with the issue price to be determined by reference to the volume weighted average price of the company’s shares during a predetermined pricing period.

“The Agreement with Lind will give the company certainty to access to equity market funding especially during the planning and six month build-up phase of the Derby Block field and support operations and allow OBL to advance its exploration program with the hopes of unlocking significant value at both its Derby Block and Backreef Area USG / USO projects,” Oil Basins director and chief executive officer Neil Doyle said in the company’s announcement to the Australian Securities Exchange.

“Importantly, the Agreement ensures that the company’s ongoing efforts are adequately funded as we advance our Canning Basin operated projects over the coming months.”