WHL Energy lines up $US2.7m funding

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.

"Over the past 3 years, WHL Energy has primarily raised its funding from shareholders," WHL managing director David Rowbottam said.

"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.