Rheochem plc, the oil and gas business with oil services, production, development and exploration assets, announces that the existing credit facility provided by ANZ Bank of A$8,111,000 has been increased to A$20,192,000. This facility is currently drawn to A$4,202,000.
The increased limit includes A$10 million for working capital which will be used to fund the drilling fluids business whilst freeing up existing resources to pay for the Company's share of the Athena oilfield development in the North Sea .Rheochem has a 5% interest in the Athena development through its 50% holding in Zeus Petroleum.
Commenting on the agreement today Haydn Gardner, CEO, of Rheochem said:
"The ability to increase the Company's borrowings in a tight credit market is evidence of the strong 5 year working relationship that we have enjoyed with ANZ"
"These funds in conjunction with the current cash and cash equivalent of A$16,390,474 provide the Company with security to continue to grow the drilling fluids business internationally whilst further appraising its upstream assets in the North Sea and USA"
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