Oilexco Increases Financing
Oilexco Incorporated (TSX; AIM: OIL) says that its wholly owned subsidiary, Oilexco North Sea Limited, has completed the syndication of its previously announced project facility underwritten by the Royal Bank of Scotland Plc (RBS). The new total for the debt financing is US$295 million, and is comprised of US$275 million for a revolving project facility and US$20 million for unbudgeted cost overruns. In November 2005 the company announced that its financing was for a total of US$245 million.
The project facility is currently being used to fund Oilexco's development of its 100% owned Brenda Field and 70% owned Nicol Field. The credit facility can be accessed for future developments other than Brenda/Nicol, subject to the banks receiving satisfactory documentation, completing due diligence and achieving any required conditions precedent.
"In March 2006 we presented our company's plans to a group of international oil and gas lenders led by the Royal Bank of Scotland to syndicate the project facility of our Brenda and Nicol developments," said Oilexco CEO Arthur Millholland. "The response was overwhelmingly positive, with 9 banks in addition to RBS joining the syndicate. As such, we were advised that we could extend the total amount of the facility. While we do not require the additional funding for our Brenda/Nicol development, the US$50 million extension will allow us enhanced flexibility as we look to develop future properties based upon our aggressive exploration and appraisal program", he commented. "It is a large stamp of approval by our debt financers not just on our current developments, but for the direction Oilexco is headed", Mr. Millholland said.
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