Rocksource Cinches Bank Loan Facility to Fund NCS Exploration
Rocksource ASA has announced the successful completion of a bank loan facility of NOK 250 million with DnBNOR Bank ASA related to exploration on the Norwegian Continental Shelf (NCS).
The purpose of this new loan facility is to strengthen the Company's financial base to ensure the execution of the increased activity level on the NCS. Rocksource is stepping up the pace on maturing owned acreage, including further CSEM testing in Q3 2008, as well as preparing to capture additional acreage through high quality competitive applications in the APA- and the 20th-licensing round later this year.
As preparation for the 20th round Rocksource has tested extensive acreage with CSEM (Controlled Source Electromagnetics), with an aim to secure the best acreage for drilling CSEM based wells.
With positive EM anomalies on existing prospect portfolio and in anticipation of further exciting awards in upcoming licensing rounds, Rocksource secured drilling capacity through participation in a rig consortium. This bank loan facility allows the Company to bridge finance a substantial part of its NCS exploration costs, and thereby provides the Company with substantial financial flexibility.
Tommy Sundt, CFO of Rocksource ASA commented, “With this new bank loan facility completed at favorable terms, we have strengthened our financial capability to meet the increased activity level on the NCS, which is a core area for the Company. With own prospects showing positive CSEM anomalies, exciting 20th Round applications to be submitted this autumn and with own drilling capacity secured, we are now financially well positioned to do further exploration on the NCS.”
As part of the financing of the increased exploration efforts going forward, Rocksource has also drawn down the remaining NOK 50 million on its existing NOK 150 million NCS exploration credit facility, which will expire upon the repayment of the tax refund from the Norwegian Tax Authorities in December 2009.