5th Nov 2013 09:24
LONDON (Alliance News) - Caza Oil & Gas said Tuesday it has entered into an agreement with Yorkville Advisors, securing a USD4.34 million loan.
The loan consists of USD3.5 million of new credit facilities and USD840,000 to repay outstanding amounts under a previous loan from Yorkville.
The funding has been secured in order to support the firms' interests in New Mexico. Together with funds available pursuant to its debt facility with Apollo Investment Management, the loan will be used to continue Caza's leasing and drilling programme in the Bone Spring Play in Lea and Eddy Counties in Southeastern New Mexico.
W. Michael Ford, Chief Executive Officer, said, "We're pleased to announce this financing, which continues our good relationship with Yorkville. The capital associated with the financing benefits Caza by lowering the cost of capital associated with the previous YA Global loan facility, and providing Caza with additional flexibility when deploying capital in the Bone Spring Play."
Ford added, "We feel it is very important to expand our prospect portfolio in the short term, while prospective leases are still available. Currently, the Apollo facility does not provide capital for leasing. Therefore, a portion of this financing will provide Caza the necessary flexibility to be competitive at upcoming New Mexico lease sales, which should translate into added shareholder value."
Shares in the firm are down 0.38% at 0.09 pence per share in early trading.
By Alice Attwood; [email protected]; @AliceAtAlliance
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