Noreco Inks $148M Loan for Exploration in NCS

Norwegian Energy Company, Noreco signed a U.S. $148 million loan facility agreement with Sparebank1 SR-Bank and DnB NOR. The facility will enable Noreco to finance up to 70% of its exploration and appraisal activities on the Norwegian Continental Shelf over the next two years.

We are now well into our extensive exploration and appraisal program of 30 wells over 3 years. Two wells have already been completed and another three are ongoing now. The loan facility ensures financing of the majority of this program at a low cost to the company, said CEO Scott Kerr.

The agreement is a U.S. $148 million revolving loan facility and U.S. $25,000,000 guarantee facility agreement is entered into with Sparebank1 SR-Bank and DnB NOR as lenders and guarantors. The revolving loan facility shall be utilized to finance up to 70% of Noreco’s exploration activities in 2008 and 2009. The guarantee facility will be utilized in connection with a drilling contract entered into with Seadrill for the drilling rig West Alpha. The loan and guarantee agreement will be finally completed when customary conditions have been fulfilled.