GDL Greka (DI)

TIDMGDL

RNS Number : 9334G

Greka Drilling Limited

02 June 2017

2 June 2017

Greka Drilling Limited

("Greka Drilling" or the "Company")

Debt Facility

Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional oil & gas driller in Asia, announces that it has secured a US$2.5 million loan (the "Loan").

The Loan is at an interest rate of 7.0% per annum and is repayable (principal and accrued interest) on 30 November 2018 or, at the option of the lender (the "Option"), between 1 January 2018 and 31 May 2018 through the transfer of the ownership held by the Company of the leases of the 28(th) and 29(th) floors of the office building in Zhengzhou, PRC where its Chinese operational headquarters are based. The net book value of these properties at 31 December 2016 was US$4.9 million and there are bank loans of approximately US$2.9 million secured on these properties. The Company has the option of repaying the Loan prior to the exercise of the Option, thereby redeeming the Option. The proceeds of the Loan will be used as to US$2.0m to pay creditors and US$0.5 million for working capital purposes.

The Loan has been provided by GRECAP Limited, which is controlled by Randeep S. Grewal, a director of the Company. Accordingly, the Loan represents a related party transaction under the AIM Rules for Companies. The Company's directors (with the exception of Randeep S. Grewal who is involved in the transaction) consider, having consulted with the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.

For further information on Greka Drilling, please refer to the Company's website at www.grekadrilling.com or contact:

 
Sarah Lowther 
 Media Relations                 +44 (0)20 7016 
 Greka Drilling                       9829 
 
Dr Azhic Basirov / David Jones 
 / Ben Jeynes 
 Nominated Adviser and Broker    +44 (0)20 7131 
 Smith & Williamson                        4000 
 
 

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUAVNRBKANRAR

(END) Dow Jones Newswires

June 02, 2017 02:00 ET (06:00 GMT)

Greka Drilling (LSE:GDL)
Historical Stock Chart
From Apr 2024 to May 2024

Greka Drilling (LSE:GDL)
Historical Stock Chart
From May 2023 to May 2024