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.

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