Tap Oil Limited disclosed Friday that it has met the BNP Paribas and Siam Commercial Bank requirement to hedge approximately 50 percent of forecast 1P Manora production from the Manora Oil Development in the Gulf of Thailand for between 6 and 12 months. Today, the Company received credit approval from BNP Paribas and has hedged approximately 700,000 barrels of forecast Manora production from April 2016 to February 2017 at an average swap price of $42.15/bbl, representing approximately 47.5 percent of forecast volumes over the 11 month period. BNP has confirmed that this will meet the condition on their credit approval for modification of its borrowing base debt facility (BNP Facility).
As previously announced on March 14, the lead debt arranger BNP Paribas has advised that they have in-principle credit approval for reducing the minimum liquidity amount that needs to be held by the Company from $10 million to $3 million and for softening the debt sizing ratio requirements. These modifications are conditional on:
The modifications proposed to be made to the BNP Facility are expected to significantly strengthen the Company’s financial position and improve its ability to withstand further prolonged periods of low oil prices until the market improves.
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