17th Mar 2009 07:00
17 March 2009
MAPLE ENERGY PLC
("Maple" or the "Company")
Drilling Rig Sale-Leaseback Financing Transaction
Maple Energy plc (AIM: MPLE; LIMA: MPLE), an integrated energy company with assets in Peru, is pleased to announce the successful completion of a US$18.87 million sale-leaseback financing facility (the "Lease Financing Facility") with Banco Internacional del Peru S.A.A. ("Interbank"), one of the largest commercial banks in Peru, on 13 March 2009 (the "Transaction").
Maple intends to use the Lease Financing Facility to finance the acquisition of the Maple Rig 1 (the "Rig"), a 2,000 horsepower heli-transportable diesel-electric drilling rig, which it acquired for approximately US$16 million plus value-added taxes. The Rig is expected to be used for drilling the Company's Santa Rosa and Cashiboya Deep prospects in Block 31-E. Upon completion of the Transaction, Interbank acquired and immediately leased the Rig back to Maple while making certain amounts available to Maple under the Lease Financing Facility.
Under the terms of the Lease Financing Facility, Interbank agreed to finance the cost of the Rig at an effective annual interest rate of approximately 13%. Maple's obligations under the Lease Financing Facility include (i) a downpayment of 30% of the Lease Financing Facility upon drawdown, (ii) the maintenance of a reserve account of not less than US$1.586 million during the term of the Lease Financing Facility which amount may be reduced upon achieving and satisfying certain financial ratios and covenants and (iii) a guarantee of all payment obligations under the Lease Financing Facility through one of the Company's wholly-owned subsidiaries, The Maple Companies, Limited.
Maple intends to draw down the full amount available under the Lease Financing Facility. Maple intends to use a portion of the borrowings under the Lease Financing Facility to fund the 30% downpayment and the reserve account required by the Lease Financing Facility. The Lease Financing Facility will be payable in monthly installments during the five-year term of the facility.
Throughout and upon completion of the term of the Lease Financing Facility, the Company shall have an option to purchase the Rig, at its sole discretion, for approximately US$200,000 plus any amounts outstanding under the Lease Financing Facility. If Maple does not elect to exercise its option to acquire the Rig, Interbank shall remain the owner of the Rig.
Rex Canon, CEO of Maple Energy, commented today:
"The successful completion of this sale-leaseback financing is another critical step towards enabling Maple to complete one of our core business strategies of exploring for hydrocarbons in Block 31-E. By accessing the credit markets to fund the acquisition of this drilling rig, we have strengthened our balance sheet and capital structure which will enable us to allocate resources to enhance value for our shareholders. The closing of this financing during challenging and volatile market conditions is a further indication of the market's confidence in Maple's management and business strategy."
For further information, please contact:
Maple Energy plc (+ 51 1 611 4000)
Jack W. Hanks, Chairman of the Board and Executive Director
Rex W. Canon, Chief Executive Officer, President and Executive Director
Jefferies International Limited (+44 20 7029 8000)
Jack Pryde
Paul Wheeler
Schuyler Evans
Mirabaud Securities Ltd (+44 20 7321 2508)
Peter Krens
Rory Scott
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
About Maple Energy
Maple is an integrated independent energy company, listed in London and Lima, with assets and operations in Peru engaging in numerous aspects of the energy industry, including:
Maple was admitted to AIM on 13 July 2007 and trades under the symbol "MPLE". The company was also admitted to the Lima Stock Exchange on 21 December 2007 where it trades under the same symbol.
Operations
Maple's operations are conducted and revenues are generated through its wholly-owned subsidiaries and equity interest in Aguaytía Energy, LLC, a joint venture in which Maple owns an approximate 17.5% effective economic interest. Maple's principal operations consist of the following:
Forward-Looking Statements
Statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns, and potential growth, are or may include forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, weather risks, economic and political risks, and other factors discussed in Maple's Admission Document available on the Company's website (www.maple-energy.com). Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward looking statements depending on a variety of factors. Furthermore, any forward looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this release. These forward looking statements speak only as at the date of this release, and Maple does not assume any obligation to update any forward looking statements, whether as a result of new information, future events, or otherwise.
Related Shares:
MPLE.L