Senior Debt Facility of up to US$100m approved for Circle Oil
Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce that IFC, a member of the World Bank Group, has received board approval to lead a four year reserve based lending facility (the “Facility”) of up to US$100 million to Circle and its subsidiaries.
IFC’s board approval allows it to take and hold up to US$50 million of the Facility and syndicate the remainder to a group of international banks specialising in reserve based lending to independent oil and gas companies. The Facility will be secured on the Company’s producing assets in Egypt and Morocco.
The Facility is to be made available to finance and refinance capital investment and operating costs in respect of the Company’s assets in Egypt, Morocco and Tunisia as well as for general corporate purposes including supporting the continuing growth of the Company in its areas of operation. The Company and IFC will now proceed to finalise and agree all relevant documentation and conditions precedent to enable drawdown.
As at 31 October 2013, Circle had cash balances of approximately US$20 million.
Commenting on the Facility, Prof Chris Green, CEO, said:
“Circle is delighted to announce the receipt of final stage board approval from IFC. Added to our existing reserves, this funding will give Circle the financial strength to exploit its portfolio of assets throughout the Middle East and North Africa. This enhanced financial position will also give us greater ability to acquire additional projects and licences. We are delighted with this approval and support from IFC.”
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