Oil and gas firm Ascent Resources has secured a one year loan facility of £2.1m and entered into a £7m Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV.

The loan facility will be drawn to contribute to the financing of the Pg-11 evaluation well on the Petisovci-Lovaszi project area in Slovenia.

The company said that the Pg-11 drilling location is now complete and Crosco is planning to mobilize its CR-1 drilling unit to the location next week and drilling will commence as soon as the rig is ready.

This well’s objectives and the evaluation program includes core sampling and wireline logging, designed to collect sufficient data for development planning, as well as calibration of the 3-D seismic to optimize the geological modeling over the entire project area.

The one year loan facility can be drawn down following completion of certain conditions precedent, including (inter alia) provision of security over Ascent’s interest in its Hungarian subsidiary.

During the term of the facility, Yorkville has the right to convert the outstanding loan balance into shares in Ascent.

The loan will be secured by a charge over Ascent’s assets and the £7m SEDA facility can be used entirely at the discretion of the company.

As per the terms of the agreement, Ascent may draw down on funds over a period of up to three years in exchange for the issue of new shares in the company.