North Sea Fields
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Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited has received credit approved offers of finance, conditional upon closing and totaling US$240 million, to support the acquisition of the Beatrice oilfield and its near term development projects Jacky and Athena.
The funding represents the bank financing required to enable the Company to: a) complete the acquisition of the Beatrice oilfield which produces approximately 1,800 barrels of oil per day (bopd); b) fund the development of the Jacky discovery which is expected to deliver first production at the end of 2008 through the Beatrice facility; and c) fund the further development of the Athena field where production is anticipated to commence at the end of 2009 through a Floating Production, Storage and Offloading facility.
Five banks comprising Societe Generale Corporate & Investment Banking; Bank of Scotland Corporate; BNP
Paribas; Lloyds TSB Capital Markets and Natixis have each obtained credit approval for an aggregate of US$ 240 million comprising: (a) a borrowing base facility of US$180 million; (b) a cost overrun tranche of US$30 million, and (c) a pre-development tranche for the Athena project of US$30 million that will be added to the borrowing base facility upon field development plan approval. The banks are now working towards finalizing transaction documentation and completing an audit of the bank model.
"Ithaca is delighted to have attracted such a strong group of leading banks, each with significant expertise in the UKNS oil sector. Given the prevailing difficulties in the credit market we have been particularly pleased with the level of commitments received, the support in structuring the deal and the speed at which the banks have acted. This financing is an important part of the funding strategy of Ithaca as it moves towards developing its
core projects," said CFO, Steven Turner.