Faroe Petroleum doubles bank credit facilities for Norwegian exploration

AIM-listed independent oil and gas company Faroe Petroleum has signed an increased bank credit facility to provide substantial additional finance to support the company's growth plans.

AIM-listed independent oil and gas company Faroe Petroleum has signed an increased bank credit facility to provide substantial additional finance to support the company's growth plans.

The amount committed under the company's Exploration Financing Facility will be doubled to NOK 1bn (approximately £110m) from the initial NOK 500m commitment, according to a statement issued by Faroe on Friday morning.

The extended facility has been put in place to service Faroe's on-going active Norwegian exploration programme alongside an expected exploration tax rebate under the Norwegian taxation system.

The maturity date of the facility has been extended by one year to December 31st 2015.

Bank participants in increased credit facility

BNP Paribas, Lloyds TSB Bank, Commonwealth Bank of Australia, DNB Bank ASA, Royal Bank of Scotland, SEB and SR Bank were named as participants in the increased facility.

Commenting on the new facilities, Iain Lanaghan, Finance Director, said:"We are very pleased to have concluded this financing exercise, which alongside the earlier increase in our reserve base lending facility, means we have doubled our committed debt facilities in 2012. The strong continuing support from our banks, all of whom participated, is a testament to the business, its prospects and assets.

"Alongside our robust production cash flows, our facilities provide us with greater funding capacity to support the development of the group in our core areas, both in terms of organic and acquisition growth," he added.

Faroe's producing assets include the Blane, Brage, Njord and Ringhorne East fields. The group, focuses principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway,

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021