20th Dec 2016 08:43
LONDON (Alliance News) - Faroe Petroleum PLC on Tuesday said it has signed two banking facilities worth a total of GBP292.5 million to back its expansion plans.
Faroe has signed a USD250.0 million, or around GBP200.0 million, reserve-based lending facility which will finance exploration, appraisal and production work for its Norwegian and UK oil and gas assets.
The seven-year facility will replace Faroe's current lending facility and also will include an additional USD100.0 million accordion facility.
In addition, Faroe has secured a NOK1.00 billion, or GBP92.5 million, Norwegian exploration financing facility, which will finance the majority of its exploration and appraisal costs on the Norwegian Continental Shelf.
An additional NOK500.0 million is available via an accordion facility on this loan, which will mature at the end of 2019.
The facilities were provided by BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo, Faroe said.
"We are very pleased to have concluded this financing exercise, and to have received such strong support from both our existing bank syndicate and new lenders. The new facilities provide us with substantial funding to support the continuing growth of the group and the financing of our development assets," said Graham Stewart, Faroe's chief executive.
Faroe shares were down 0.3% to 99.43 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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