The initial facility size is for US$10 million, although Candax said its assets in Tunisia could support a significantly higher facility if required. The company plans to use the facility primarily to support various new venture activities. However, Candax adds that the arrangement gives it operational flexibility to redevelop the El Bibane field in the North African country and to potentially fast-track new project development activities.
The company said that the facility supplements its already strong cash position and positive cash flows from its Tunisian production and development programs.
"This represents a significant milestone for Candax in establishing a banking relationship with an international bank that can support our growth activities and enhance our operational and financial flexibility," said Chris Hopkins, Candax's chief financial officer.
"Candax has ambitious growth plans and welcomes this strategic relationship with the Bank of Scotland, one of Europe's leading international energy banks," remarked Michael Wood, the company's president and CEO. "Both Candax and the Bank of Scotland are strongly aligned in our joint pursuit of substantial and profitable growth. This relationship will enable Candax's shareholders to gain significant leverage as Candax continues to deliver growth and a strong financial performance."
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