29th Oct 2018 12:04
LONDON (Alliance News) - Oil & gas exploration company Faroe Petroleum PLC on Monday said it has increased the value and extended the maturity of its loan.
The reserve based lending bank credit facility now matures in December 2025, a two year extension which restores the original seven-year loan maturity.
The committed amount of the loan has been raised to USD350 million, all banks involved in the facility having agreed to Faroe exercising its accordion. This accordion allowed the original USD250 million facility to be extended by USD100 million with permission from these ten banks.
Faroe Chief Executive Graham Stewart said the loan is now "fully fit for purpose" and capable of supporting both its strategic aims and continued growth.
"We are targeting a material increase in shareholder value and cashflow with our fully funded investment programme across the portfolio, encompassing exploration, appraisal, development and production. I remain confident in our ability to deliver our stated near- to medium-term production growth target of 35,000 [barrels of oil per day] from the group's existing asset base," said Stewart.
Shares in Faroe were up 2.2% at 151.40 pence on Monday.
Related Shares:
Faroe Petroleum Plc