88 Energy Completes Loan Refinance With Bank Of America

26th Mar 2018 17:20

LONDON (Alliance News) - 88 Energy Ltd completed a loan refinance with Bank of America in respect to the oustanding balance of USD16.5m, on terms similar to the original agreement.

The exact terms of the agreement remain confidential for commercial reasons, 88 Energy said. This agreement extends the maturity date from June 30 this year to December 30, 2022.

The Alaska-focused oil explorer has assigned the loan to FCS Advisors, doing business as Brevet Capital Advisors.

88 Energy has a 63% working interest and operatorship in roughly 342,000 acres onshore the North Slope of Alaska, also known as Project Icewine.

The North Slope is where the 15 billion barrel Prudhoe Bay can be found, the largest conventional oil pool in North America.

In 2014, 88 Energy entered into a binding agreement with Burgundy Xploration to acquire significant working interest, 87.5%, reducing to 77.5% on spud of the first well on the project.

Managing Director, Dave Wall, commented: "The refinancing of the loan, with an extension to the maturity date, provides a more than comfortable time buffer whilst we await payment of approximately USD21m in cash credits from the State of Alaska.

"The current legislative session in Alaska is contemplating several solutions that could see the majority of the loan repaid this calendar year; however, detail is unlikely to be known prior to June 30, 2018.

"We would like to thank Bank of America for their support in our endeavours and welcome Brevet Capital Advisors as our funding partner moving forward."

Shares in 88 Energy closed up 1.6% at 1.93 pence on Monday.

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