Zenith agreed to provide the loan alongside its acquisition of an 80% interest in AAOG’s Tilapia field in the Congo, and, in order to complete the process, it is necessary for AAOG to make changes to the now part-owned subsidiary in the Republic of Congo.
The Anglo African Oil & Gas Congo S.A.U is presently being reregistered as a "multi shareholder" company, AAOG said, noting that this was an ‘administrative legal process’.
AAOG has therefore yet to draw down the £250,000 loan, though it said it is confident of being able to do so in due course.
“In the meantime, and following receipt of monies from Forum Energy Services Limited as announced on 20 January 2020, the Company has sufficient cash to continue trading until the end of March absent the loan from Zenith and any unforeseen valid claims,” the company said.
Through a series of transactions and new agreements, AAOG is set to effectively become a cash-shell as it seeks potential new opportunities.