Sino-Australian investment and trading house ASF Group (ASX:AFA) has extended the date of repayment for a loan of $2 million made to Rey Resources (ASX:REY) to 30 June 2016.
The facility has been fully drawn down by Rey. ASF holds a 18.3% shareholding in the Western Australian energy developer.
Rey has oil and gas exploration in two key basins, the Canning (Fitzroy Blocks and Derby Block) and Perth (EP437).
Two wells have been drilled in the Fitzroy Blocks with a good reservoir found in the Victory-1 with a flow test to be performed at a later date.
Rey also has coal interests at Duchess Paradise.
In December, by mutual agreement managing director Kevin Wilson announced his resignation, effective 31 May 2016.
In early February 2016, Rey raised $1 million by way of a placement of 33,333,333 fully paid ordinary shares at an issue price of $0.03 per share to an existing shareholder, Ms Wanyan Liu, a sophisticated investor qualifying under the Corporations Act.
ASF Group held $2.4 million in cash reserves in December 2015.
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