Cirrus to Repay Borrowing Base Facility
Cirrus and its wholly owned subsidiary Cirrus Energy Nederland have elected to repay the outstanding balance, totaling C$15.7 million, of its borrowing base facility with The Royal Bank of Scotland plc ("RBS") and cancel the facility. The early repayment and cancellation of the borrowing base facility is expected to save Cirrus approximately C$1.0 million in financing charges over the next fifteen months. The borrowing base facility repayment will be made from Cirrus' restricted and unrestricted cash balances of approximately C$43.8 million.
The Company is currently well positioned from a financial resource perspective with current working capital of approximately C$25.5 million (net of debt to be repaid). Our strong balance sheet combined with current operating cashflow of approximately C$2.0 million per month provides Cirrus with the flexibility to react immediately to opportunities in The Netherlands, the UK and potentially other international locations.
Cirrus' President, David Taylor, commented, "The current borrowing base facility was established to finance the completion of the M07-A development project and to finance the modification work on the L11b-A platform that was required to tie-in the L11b-A06 development well. With these projects now completed and providing material cashflow, we have determined that there is no further benefit in maintaining the facility."