CHK Oil (HKG:0632) has agreed to partially settle an amount of HK$5 million of a loan from Xin Hua Petroleum (Hong Kong) through allotment and issue of 12,048,192 shares at HK$0.415 apiece, a Friday bourse filing said.

Following completion of the settlement, about HK$6 million will remain outstanding under the loan, which is expected to be repaid from the company's internal financial resources.

The shares issued represent about 1.41% of the company's enlarged issued share capital.

Xin Hua Petroleum (Hong Kong) is the controlling shareholder of CHK Oil.