- Prominence Energy (PRM) secures additional funding ahead of drilling at its Bowsprit well in the State of Louisiana
- A drill rig was expected on August 15 but due to delays it is anticipated to arrive in the coming week
- To fund costs associated with discovery evaluation and contingent drilling, PRM has secured convertible note loans for $750,000
- Shares closed down 8.33 per cent at 1.1 cents on August 26
Prominence Energy (PRM) has secured additional funding ahead of drilling at its Bowsprit well in the State of Louisiana.
At the end of July the company announced it had secured a rig through a deal with Parker Drilling and work was expected to begin on August 15.
However, the rig was delayed by work at another well after experiencing a setback in starting operations by that particular operator.
In an update to the market, PRM said it rescheduled drilling to start around August 25 as the rig was set to complete its previous operations by August 24.
Today the company stated the drilling contractor had given notice that the rig “should” be mobilised in the coming week.
To fund discovery evaluation costs and contingent drilling costs, PRM has secured convertible note loans for $750,000.
The convertible note is repayable on January 31, 2022 or converts to PRM shares at a 20 per cent discount to the 10 day volume weighted average price.
Commenting on the raise, the company’s Managing Director said the funds would most likely go towards sampling and evaluation of the formation fluids in the event of success, contingencies and for working capital.
Shares closed down 8.33 per cent at 1.1 cents on August 26.