Circle Oil was thrown a financial lifeline after securing an extension for its repayments.
The International Finance Corporation (IFC) agreed to further extend the suspension of the December 2015 redetermination and any repayments due under its Reserve Based Lending facility until August.
Last month, the firm was forced to suspend its shares from the London Stock Exchange. Infrequent payments from the Egyptian General Petroleum Corporation (EGPC) contributed to its revenue falling from $84.92million to $39.95million.
A company statement today read: “As noted, most recently, in Circle’s Preliminary Results announcement of 29 June 2016, the company’s financial position remains under significant pressure.
“US dollar payments from EGPC have continued to be unpredictable and to date there has not been a sustained improvement.
“As a result, the company continues to explore options for additional funding during the course of July in order to be able to discharge its financial obligations from August 2016.”
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