Advertisement

Caza Oil & Gas secures financing facility with Apollo Investment Management

AIM-listed Caza Oil & Gas has entered into a note purchase agreement with Apollo Investment Corporation, an investment fund managed by Apollo Investment Management, through which Apollo Investment Management has agreed to purchase up to 50m dollars of senior secured notes of Caza Oil & Gas.

AIM-listed Caza Oil & Gas has entered into a note purchase agreement with Apollo Investment Corporation, an investment fund managed by Apollo Investment Management, through which Apollo Investment Management has agreed to purchase up to 50m dollars of senior secured notes of Caza Oil & Gas.

The company reported that it received $20m at the closing of the agreement and could draw additional advances of up to $30m in aggregate at its discretion during the following 15 months, subject to conditions.

Advertisement - Article continues below

It added that it expected to use the proceeds from the sale of the notes to fund an initial program to drill up to 12 oil and gas wells on its Bone Spring properties located in Lea and Eddy Counties in southeastern New Mexico over the next 12 months.

Upon completion of the initial programme, the company said it planned a second program to drill 12 additional oil and gas wells in the Bone Spring play, with such program to be funded from the proceeds of a subsequent sale of notes pursuant to the agreement.

Michael Ford, Chief Executive Officer of Caza Oil & Gas, said: "We are extremely pleased to announce this financing facility with Apollo. We made significant progress in 2012, laying the groundwork for continued success in the Bone Spring play in Lea and Eddy Counties, New Mexico.

"However, in order to efficiently and properly advance the company's prospects and properties in the play, additional financing of proper size and scope was needed."

He added: "The company intends to utilize the Apollo facility to embark on an accelerated and expanded drilling program in the Bone Spring play over the next two years. We believe this facility provides a substantial opportunity for the company to achieve material production, revenue and reserve growth along with meaningful shareholder returns within this timeframe."

Caza Oil & Gas' share price was up 23.61% to 11.12p at 09:33 on Friday.

MF

Advertisement
Advertisement

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
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020