Australia-based oil and gas exploration and production company International Petroleum announced that it has secured a loan facility of $15m from an unrelated third party.

The loan is expected to be used towards paying the company’s Russian creditors and general working capital.

An 8% rate of interest per annum will be charged, if International Petroleum elects to use the loan amount.

At present, the company is finalizing the terms of the loan and has requested that its securities remain in suspension until the terms are announced. The company may also choose not to proceed with the transaction.

International Petroleum and the loan lender have agreed to negotiate appropriate security for the loan, but any security provided will be second ranking to any security already provided by the company.

The loan is to be repaid on or before 30 April 2014.