(Alliance News) - Igas Energy PLC on Wednesday said it has now completed the repayment of its secured bonds plus accrued interest through the drawdown of USD25 million from the reserve-based lending facility with BMO Capital Markets.
Igas noted that this transaction has no impact on net debt, which was GBP5.3 million as at October 31.
In addition, the AIM-listed exploration & production company said net output for 2019 remains on track and at the top end of the range previously guided, between 2,200 and 2,400 barrels of oil equivalent per day.
Igas said operating costs are still anticipated to be USD31 per barrel of oil equivalent. Assuming current exchange rate levels, the company said it will generate GBP15 million of free operating cash flow in 2019 from the conventional business before administrative expenses, capital investment and finance costs.
"It is very pleasing to announce the completion of the refinancing, which brings with it greater available capital to grow our conventional business, alongside a reduction of financing costs of USD1 million on an annualised basis," said Chief Executive Stephen Bowler.
Igas shares were trading 2.9% lower in London on Wednesday afternoon at 34.75 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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