Eland Secures $75 million Reserves Based Lending Facility
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production, development and exploration company operating in West Africa with an initial focus on Nigeria, announced it has finalised arrangements for a new reserves based lending (“RBL”) credit facility of up to US$75 million.
The Company has executed a facility agreement for up to $75 million with Standard Chartered Bank (“SCB”), with the credit facility secured against OML 40 reserves. The RBL has a maturity of four and a half years, is repayable quarterly from September 2016 and has a margin of 7.75% over LIBOR.
SCB has committed $35 million of the facility and will continue to act as lead arranger for syndication of the remaining $40 million. Marketing of the syndication has already begun and completed commitments are expected in Q1 2015.
The facility will be accessible by Elcrest Exploration and Production Nigeria Ltd, Eland’s joint venture company, to continue the development of the Opuama Field in OML 40 and for Eland’s general working capital purposes. Eland expects the addition of future reserves and production growth to add to the size of the available RBL.
Draw-down of the funds is subject to a number of documentary conditions precedent which the Company expects to satisfy in the next few weeks.
George Maxwell, CEO of Eland Oil & Gas commented:
“I am delighted that we have signed this RBL facility. The strong commitment from SCB in the current market conditions highlights the robustness and value of our asset base even accounting for the current lower oil price environment.
The successful completion and availability of a long term debt facility will ensure the company has the financial capacity to execute work programmes on our assets. As we progress with the development of these assets we see the opportunity to grow the facility substantially and we are looking forward to a long term relationship with the lead arrangers and the syndicate.”
Source: Eland Oil & Gas