14th Mar 2006 07:00
Embargoed for release: 0700 on 14 March 2006 Northern Petroleum Plc ("Northern") ¢â€š¬40 Million Project Finance Facility Northern is pleased to announce that Standard Bank Plc ("Standard Bank") hasapproved the terms of a project finance facility of up to ¢â€š¬40 million withNorthern's subsidiary NP Netherlands B.V ("NPN") secured over the assets ofNPN. Northern is acting as sponsor of the NPN facility and is providing asponsor guarantee. The parties are now moving towards completion of thedetailed facilities documentation.Drawdown is subject to satisfying the terms of the facility, which are normalfor this type of transaction. Up to ¢â€š¬35 million will be made available to fundthe capital cost (including a contingency for cost overruns) of bringing NPN'ssix onshore oil and gas properties in the Netherlands to production. A further¢â€š¬5m working capital facility will be made available once NPN has reached firstproduction. The facility will have an initial duration of 60 months from firstdrawdown of funds, with repayments to commence six months after scheduled firstproduction.Upon signature of the facilities documentation, it has been agreed thatStandard Bank will be issued with three million warrants at prices based upontrade weighted prices of Northern's shares at various times within theagreement process. Standard Bank has agreed not to sell the warrants, or theshares issued upon exercise of the warrants, until the earlier of 12 monthsafter first scheduled production or 18 months from first drawing under thefacility.Chris Foss, Finance Director of Northern, stated:"We are delighted that Standard Bank, who have a proven track record inadvising and lending to the natural resources sector, has recognised thepotential of NPN's development project in the Netherlands and has agreed toprovide this facility. We look forward to working with them to bring NPN's oiland gas reserves into production as soon as possible."Armin Eckermann, Head of Financing - Resource Banking, of Standard Bankcommented:"Looking at the oil, gas and electicity generation economics of theNetherlands, Standard Bank is more than comfortable in financing the projectand is delighted to be engaged with Northern Petroleum Plc which was able toreview and develop an oil, gas and electricity model in such a competitiveNorthern European market environment. This model can become a blueprint for theindustry."For further information please contact:Northern Petroleum PlcDerek Musgrove, Managing DirectorChris Foss, Finance DirectorTel: +44(0)20 7743 6080InvestecMichael AnsellAndrew ChenTel: +44(0)20 7597 5000Standard Bank Plc, LondonMandated Lead ArrangerErik JorgensenTel: +44(0)20 7815 4200Hansard CommunicationsChris RobertsBen SimonsTel. +44(0)20 7245 1100Further information on Northern Petroleum Plc is available via our website,www.northpet.comAuthorised and Regulated by the Financial Services AuthorityENDNORTHERN PETROLEUM PLCRelated Shares:
Cabot Energy