Coastal Energy Secures Credit Facilities
Coastal Energy has secured US$50 million of borrowing base credit facilities arranged by Sumitomo Mitsui Banking Corporation Europe Limited.
The facilities are based on Coastal's 12.6% net interest in the producing Phu Horm Gas Field located in Northeast Thailand. In excess of $40 million will be available for drawdown at closing. Proceeds from the financing will be used to fund the Company"s offshore development program over Block G5/43 in the Gulf of Thailand and for general corporate purposes.
The offshore Block is 100% owned and operated by Coastal and is expected to commence production in the first quarter of 2008. The facilities have a December 31, 2013 maturity date.
Coastal reported a cash position as of March 31, 2007, of US$12.2 million.
Coastal Energy CEO Frank Inouye said "Frank Inouye, Chief Executive Officer of Coastal, commented: "The successful completion of our initial credit facilities with a well-renowned, AA-rated, international bank solidifies the Company's capital structure. The financial resources will enable us to achieve our near term corporate objective of increasing production and cash flow from our existing asset base. The confidence shown in Coastal by SMBC is testimony to the progress we have made as a company and we look forward to further developing our relationship with our new partner."
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