Australia's AWE Limited disclosed Thursday a new four-year, $326 million (AUD 400 million) secured multicurrency syndicated bank loan facility to replace its existing $244.5 million (AUD 300 million) unsecured loan facility.
Chief Financial Officer of AWE, Ayten Saridas, said that the new facility further strengthens the company’s capacity to deliver its expanding portfolio of major growth projects and take advantage of emerging opportunities.
“AWE’s ability to increase its bank facility by $81.5 million (AUD 100 million) to $326 million (AUD 400 million) in the current low oil price environment reflects the strength and stability of the company’s asset portfolio and the resilience of the underlying projected cash flows,” Saridas said.
Over the past 12 months, AWE has added two significant projects to its development portfolio: the Senecio/Waitsia gas project in the onshore Perth Basin and the Lengo gas project offshore Indonesia. The Perth Basin project, together with BassGas, Sugarloaf and Ande Ande Lumut, are core elements of AWE’s growth strategy.
“The extended term of the facility through to 2019 will provide greater certainty of funding through a period of significant growth. Another key outcome has been to increase the flexibility of financing options available to the company,” Saridas said.
A key aspect of AWE’s successful business strategy is maintaining diversity of production, product and geography across its portfolio of assets.
“Having a diverse production base of oil and gas assets that generate strong cash flows has allowed AWE to continue to invest in appraisal and development projects, despite challenging market conditions. Following establishment of this new facility, AWE is now in an even stronger position to deliver on its goal to more than double annual production to 10 mmboe by the end of 2018,” added Saridas.
The loan syndicate includes leading Australian and international banks with Westpac Banking Corporation as the mandated Lead Arranger and Bookrunner.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you