Under the terms of the Facility, US $25 million will be made available at closing to supply general working capital, fund the balance of the Singleton acquisition and to provide funds to drill and complete wells on existing assets. The remaining US $225 million will be made available, at Macquarie's discretion and subject to the terms of the Facility, to fund oil and gas acquisitions, investments and development opportunities as they arise. The Facility has a term of 5 years to December 2012, replacing the current financing facility, which was due to mature in April 2010.
Speaking on the new Facility, Tony O'Reilly Junior, Chief Executive of Providence Resources, said:
"This new, upgraded and extended Credit Facility is great news for Providence and its shareholders. It demonstrates Providence's solid corporate growth over the past 2 years and it provides the Company with a more flexible and substantive Credit Facility going forward.
'The provision of this new Facility is particularly encouraging at a time when potential investment opportunities are numerous and the general credit market is extremely tight with limited financing lines. This Facility will allow Providence to move quickly on production and development opportunities, in line with our stated aim to increase our daily oil production rates. We are delighted to be further strengthening our relationship with Macquarie Bank Limited."
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