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

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