On Thursday, the company announced that it had been forced to dip into its cash reserves due to the “extended time and expense” at the Primero-1 well in Reid’s Dome permit PL-231. At the same time White Sands said director Jayne Steele had resigned, citing “differences of opinion” with the board over the valuation of the company’s assets.

So far unable to formalise a funding agreement with its partner Dome Petroleum Resources, White Sands announced this morning that representatives from both companies would meet in London this week to consider alternative funding options.

It expects a decision will be reached in about 10 days time, during which time the company has requested its stock to be suspended from ASX trading.

Dome paid the budgeted cost of drilling Primero-1 upfront and has now agreed to arrange further financial support to White Sands and the joint venture.

This financial support would allow the JV to complete the well with a flow test of the Cattle Creek shallow gas reservoir.

One possible solution would be for Dome to buy and lease back the fully automated EDM WSP Rig-1, according to White Sands.

Participants in Primero-1 and PL 231 are Victoria Petroleum (40%), Dome Petroleum (40%) and operator White Sands (20%).