- African oil and gas warned it may run of money by February, though said it continued to make progress to secure financing as it awaited proceeds from the sale of a stake in its Congo subsidiary.

The timing of the payments - £1m in cash and shares - from the sale of 80% of the company's stake in its subsidiary Anglo African Oil & Gas Congo would mean that the company would not have sufficient cash to allow it to continue as a going concern beyond the beginning of February, African Oil and Gas said.

But the company said it was in talks with RiverFort to provide financing by way of a convertible loan note, which was conditional on shareholders approving the disposal at the general meeting to be held on 13 January.

If shareholders approve the sale, then an initial tranche of £250K of the loan note would be available at the conclusion of the general meeting, and further tranches of £50K would be available to be drawn down thereafter every month, the company said.

The company also said it had entered into an agreement with Zenith who would advance a loan of £250K. The Zenith loan would be available, subject to shareholder approval of the disposal, on 25 January 2020.

'Assuming receipt of £250,000 pursuant to the Loan Note and £250,000 pursuant to the Zenith Loan by the end of this month, the Company would have sufficient working capital for the next three months,' it added.

'No proposal other than the disposal has indicated a certain ability to provide finance in that quantity while allowing AAOG and its shareholders to retain such a large interest in the asset.'

At 8:09am: [LON:AAOG] Anglo African Oil Gas Plc Ord 5p share price was -0.05p at 0.53p

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