WHL Energy Receives $4 million in Funding For Australia, Seychelles Assets

Australian energy company WHL Energy Limited has announced it has received new funding support providing for a commitment of US$4 million from New York-headquartered investment firm Magna Equities II, LLC.

WHL Energy will have immediate access to US$125,000 of those funds which will enable the Company to maintain its momentum in increasing the prospectivity of its Seychelles and VIC/P67 “La Bella” projects.

According to WHL Energy Managing Director David Rowbottam the new funding comes at a time when the junior-end of the resources market is struggling to raise fresh equity is a tremendous vote of approval for both WHL Energy and its existing assets

“This is a sensible step for the Company and its shareholders and will allow us to continue the ongoing work with the Company’s existing assets and to advance work on new opportunities currently being reviewed,” says Rowbottam

Under the Magna Facility, WHL Energy will receive an initial US$125,000 in funding on the date of closing and an additional US$125,000 within 30 days of closing.

Subsequent funding in tranches of up to US$250,000 is available every 60 calendar days (to a maximum of US$3.75 million) at the Company’s election, subject to customary conditions including no events of default or termination events having occurred.

The Magna Facility has a 24 month term from the date of each drawdown, is unsecured, bears no interest costs, can be repaid at any time by the Company with a 15% premium and can be converted into WHL Energy shares at any time by Magna during the term at a 20% discount to the 5-day volume weighted average price (VWAP) of WHL Energy’s ordinary shares.

Magna CEO Joshua Sason on his part says the investment shows continued cooperation with companies in the Australian market

“Magna is delighted to support WHL Energy and the development of its world class Seychelles and Australian oil and gas assets. This investment marks our continued effort to build lasting and mutually beneficial relationships with exciting companies in the Australian market,” says Sason.

Magna makes direct investments across the worldwide public and private equity markets and the entertainment industry.

Last year WHL Energy Limited announced it had completed a financing agreement to raise A$3.2 million via a cash advance term loan facility to be utilized to fund WHL Energy’s ongoing activities including the current interpretation of 3D seismic data acquired over the VIC/P67 La Bella permit, offshore Victoria, and potential corporate transactions.

In Seychelles WHL is now focused on processing and interpreting the data received from of the 1,528km2 Junon 3D seismic survey.The Junon 3D seismic survey was designed to mature a number of prospects for drilling on the Junon trend in the east of Ophir Energy plc’s /WHL Energy Seychelles acreage (Junon South, Junon East and Junon Central), an area high graded by WHL Energy’s previous geological studies.

WHL Energy holds a 12,856 km2 exploration area offshore Seychelles, at 25% equity where Ophir Energy is the operator.