Oilexco Accepts US$245 Million Financing from RBS
Oilexco's wholly owned subsidiary Oilexco North Sea Limited has accepted a written offer from The Royal Bank of Scotland for a US$245 million 5 year term facility to develop Oilexco's 100% owned Brenda field and 70% interest in the nearby Nicol field. The Project Facility will be provided by RBS subject to satisfactory documentation, due diligence and achievement of all required conditions precedent. The aggregate US$245 million is composed of a US$225 million revolving facility available initially to meet all of Oilexco's currently budgeted costs of developing both fields and thereafter for general corporate purposes and a US$20 million junior contingent facility for unbudgeted field development cost overruns. A number of other ancillary facilities will also be provided by RBS to Oilexco in conjunction with the Project Facility which are also subject to satisfactory documentation.
RBS has also agreed to the immediate expansion of Oilexco's existing Bridge Facility from Pounds Sterling 10 million to Pounds Sterling 25 million to fund anticipated development expenditure prior to financial close of the Project Facility, currently anticipated in late January 2006.
"The recent approval of the Brenda Field Development Plan and this debt financing puts the key building blocks in place for Oilexco to achieve our stated goal of becoming a full cycle oil & gas independent with significant production in 2006. This US$245 million credit facility will provide Oilexco with flexibility in funding its objectives over the next few years. The continued support of RBS as exclusive arranger of debt financing for Oilexco is greatly appreciated and their expertise in the North Sea has been an asset for us., We are now preparing the Nicol Field Development Plan for review by our joint venture partners and submission to the Department of Trade and Industry for approval." said Art Millholland, President of Oilexco.
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