On July 4, 2008, Oilexco signed an engagement letter with respect to refinancing Oilexco's current debt obligations and increasing Oilexco's total debt availability from US $700 million to US $1 billion.
The credit facility was to be underwritten by a syndicate of key relationship banks, subject to standard internal credit approvals and due diligence. Since the July 4th, announcement was made the Company has worked closely with its banks to progress this facility, and has received extremely positive feedback on the Company's financial position and its viability as a credit partner for the potential syndicate.
However, due to the unprecedented liquidity and volatility issues facing the credit markets, the process to financial close is taking a little longer than anticipated. Therefore, given that Oilexco is fully funded for the remainder of its 2008 capital program and has strong cashflow because of its current production base, the Company feels it is prudent to actively monitor, and where necessary, review the refinancing process in conjunction with its banking and other advisors, and evaluate alternative financing options available to it in the current market. A further update will be provided in due course.
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