Circle Oil PLC Signing of Senior Debt Facility with IFC (2915C)
March 14 2014 - 3:01AM
UK Regulatory
TIDMCOP
RNS Number : 2915C
Circle Oil PLC
14 March 2014
14 March 2014
Circle Oil Plc
("Circle" or the "Company")
Signing of Senior Debt Facility with IFC
Circle Oil Plc (AIM: COP), the Middle East and Africa focused
oil and gas exploration, development and production company, is
pleased to announce the signing of a reserve based lending facility
(the "Facility") of up to US$100 million with IFC, a member of the
World Bank Group.
The Facility matures in June 2018 and is secured against the
Company's producing assets in Egypt and Morocco. IFC, subject to
conditions precedent usual for a facility of this nature, will hold
US$50 million of the Facility and syndicate the remainder to a
group of international and regional banks. Syndication is ongoing
and will close after signing.
The Facility is designed to release capital for investment in
new exploration and development of the Company in both its core
markets and elsewhere and is based on the expected cashflows from
the Company's producing assets in Egypt and Morocco. The Facility
will also be used to repay the existing working capital facility of
US$12.5 million agreed with Ahli United Bank Egypt in December
2012. Redetermination of the loan amount is expected to be
undertaken every six months based on updated technical and economic
assumptions and it provides a mechanism through which new producing
assets may be added in the future.
Commenting on signing of the Facility, Prof. Chris Green, CEO,
said:
"We are very pleased to have signed this loan agreement with IFC
which together with our existing reserves will provide Circle with
the financial strength to exploit and expand its current portfolio
of assets in the Middle East and Africa. This debt facility also
demonstrates the quality of our producing assets in both Egypt and
Morocco"
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Brendan McMorrow, CFO
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Simon Atkinson
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0300)
Joe Murray
Joe Heron
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas
exploration, development and production Company with an expanding
portfolio of assets in Morocco, Tunisia, Oman and Egypt with a
combination of low-risk near-term production and significant
exploration upside potential.The Company listed on AIM in October
2004.
Internationally, the Company has continued to expand its
portfolio over the past number of years and now has assets in the
Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia;
the Mahdia Permit offshore Tunisia; and the Zeit Bay area of Egypt.
Circle also has the largest licence holding of any company in Oman.
In addition to its prospective Block 52 offshore, Circle also has
an ongoing exploration programme in Block 49 onshore.
Circle's strategy is to locate and secure additional licences in
prospective hydrocarbon provinces and through targeted investment
programmes, monetise the value in those assets for the benefit of
shareholders. This could be achieved through farm-outs to selected
partners who would then invest in and continue the development of
the asset into production, or Circle may itself opt to use its own
expertise to appraise reserves and bring assets into production,
generating sustained cash flow for further investment.
Further information on Circle is available on its website at
www.circleoil.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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