Oil and gas explorer WHL Energy has secured a one-off $US2.7 million loan from New York-based institutional investor Bergen Global Opportunity Fund.
WHL will issue Bergen 42 million fully paid ordinary shares and 98 million options exercisable at 1.4 cents in exchange for a lump-sum loan.
The loan will provide for WHL's portion of the funding for a seismic survey over the La Bella field off South Australia, where it holds an exploration permit.
AWE is providing 75 per cent of the survey funding under the terms of a farm-out agreement between the two explorers.
"Given the current difficult economic environment, this agreement with the fund provides WHL Energy with access to outside cash secured against a receivable, while potentially minimising the dilution to existing shareholders."
WHL shares were steady at 0.8 cents at 10:15am WST.