Trapoil secures loan from GE Energy to fund UK North Sea projects

Trapoil said Wednesday it secured a 20m dollar loan from GE Energy to fund developments in the UK North Sea.

Trapoil said Wednesday it secured a 20m dollar loan from GE Energy to fund developments in the UK North Sea.

The oil and gas company entered into a three-year senior secured borrowing base facility agreement with an affiliate of GE Energy Financial Services, supported by associated hedging arrangements with Britannic Trading, a subsidiary of BP International.

The facility will be available immediately and used for works on the Athena and Crazy Horse assets.

The terms of the loan is linked to the economic performance of the group's interest in the Athena and Lybster fields.

In conjunction with the facility, Trapoil entered into oil price hedging arrangements for the duration of the loan. Trapoil said it would provide greater visibility in respect of future cash flows arising from a significant proportion of the group's near term forecast production as it continues to build its exploration and appraisal work programmes.

"I am delighted that we have secured this debt finance from an affiliate of GE Energy Financial Services supported by hedging arrangements with the BP group," Mark Groves Gidney, Chief Executive Officer of Trapoil said.

"The facility will assist with the further appraisal and development of the promising assets within our existing portfolio and the exploitation of good exploration opportunities alongside our partners where we earn carried interests. We look forward to building on our new relationships with GE and BP."

RD

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021