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Circle Oil secures loan to fund Middle East and Africa expansion

Fri, 14th Mar 2014 12:19

Circle Oil has secured funding of up to 100m dollars to expand its exploration and production in the Middle East and Africa.The group has signed a reserve-based loan with World Bank Group member IFC, which is secured against Circle's producing assets in Egypt and Morocco.The oil company plans to use the cash to develop its assets in Morocco, Tunisia, Oman and Egypt and to fund new exploration elsewhere.Circle will also use it to repay the existing working capital facility of $12.5m agreed with Ahli United Bank Egypt in December 2012. The facility matures in June 2018 and is secured against the company's producing assets in Egypt and Morocco.IFC will conditionally hold $50m of the loan and syndicate the rest to a group of international and regional banks. Syndication is ongoing and will close after signing.Circle's Chief Executive Chris Green said: "We are very pleased to have signed this loan agreement with IFC which together with our existing reserves will provide Circle with the financial strength to exploit and expand its current portfolio of assets in the Middle East and Africa. This debt facility also demonstrates the quality of our producing assets in both Egypt and Morocco."Circle's shares fell 0.4p or 1.6% to 22.9p at 13:16 in London.PW
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