12th Nov 2013 11:53
LONDON (Alliance News) - Circle Oil PLC Tuesday said it has secured a senior debt facility of up to USD100 million with IFC, a member of the World Bank Group.
The reserve-based facility, which will be secured on the company's Egyptian and Moroccan producing assets, is for four years and can be used to finance and refinance capital investment and operating costs for Circle Oil's assets in Egypt, Morocco and Tunisia as well as general corporate purposes that support growth.
IFC will provide up to USD50 million itself and syndicate the remainder to a group of international banks specialising in reserve based lending to independent oil and gas companies, Circle Oil said in a statement.
"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," Chief Executive Chris Green said. "This enhanced financial position will also give us greater ability to acquire additional projects and licences."
Circle Oil has cash balances of about USD20 million at the end of October.
Circle Oil shares were up 1.9% at 19.49 pence midday Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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