LONDON (Alliance News) - Circle Oil PLC Friday said it has signed a reserve based lending facility of up to USD100 million with World Bank Group member IFC, secured against its Egyptian and Moroccan assets.
The facility matures in June 2018. IFC will hold USD50 million of the facility and syndicate the remainder to a group of international and regional banks.
"The facility is designed to release capital for investment in new exploration and development of the company in both its core markets and elsewhere and is based on the expected cashflows from the company's producing assets in Egypt and Morocco," Circle Oil said in a statement.
It added that it will also use the facility to repay an existing working capital facility of USD12.5 million it agreed with Ahli United Bank Egypt in December 2012.
"Redetermination of the loan amount is expected to be undertaken every six months based on updated technical and economic assumptions and it provides a mechanism through which new producing assets may be added in the future," it added.
Circle Oil shares were up 0.5% at 23.375 pence early Friday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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