Petroceltic International secures access to 500m dollars of financing

Petroceltic International, the upstream oil and gas exploration company focused on North Africa, the Mediterranean and the Black Sea regions has finalised a financing agreement for up to 500m dollars with a syndicate of international banks and the International Finance Corporation.

Petroceltic International, the upstream oil and gas exploration company focused on North Africa, the Mediterranean and the Black Sea regions has finalised a financing agreement for up to 500m dollars with a syndicate of international banks and the International Finance Corporation.

The company said that this would replace the $300m bridge facility provided exclusively by HSBC in 2012 to support the merger with Melrose Resources.

The financing has two tranches: Tranche A is a revolving senior Reserve Based Lending Tranche of up to $375m; Tranche B is a Development Financing Tranche of up to $125m. Both Tranches have an initial five-year term, however are extendable by two years, subject to lender consent.

Brian O'Cathain, Chief Executive Officer of Petroceltic, said: "We are delighted to conclude these financing arrangements which represent an important step in the on-going development of our business and a strong technical and financial endorsement of the quality of our producing assets and longer term growth ambitions."

"We are particularly pleased to secure the first direct debt funding for the world class Ain Tsila field in Algeria with availability generated via the on-going development and de-risking of the asset.

"This facility, combined with our planned farm-out of an additional interest in Ain Tsila, means the business is well funded and has a firm foundation on which to build over the coming years."

Petroceltic's share price was up 1.66% to 6.756p at 09:05 on Monday.

MF

Recommended

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022