Vaalco Energy Inc - Houston, Texas-based hydrocarbon exploration company - Enters new credit agreement for five-year reserve based lending facility with Glencore Energy UK Ltd, for an initial commitment of USD50 million and can be extended to USD100 million.
New facility is expected to improve the company's financial flexibility for the achievement of accretive growth, and strengthens its financial position by keeping its forecast 2022 capital program fully funded.
The facility matures in 2027, and is secured by the Etame assets.
"This new credit facility provides dry powder for future opportunities and could reduce our overall cost of capital by providing immediate access to funds at a low rate, if required. It enhances our opportunity set and allows us to continue to focus on our strategy to build meaningful size and scale to deliver future accretive growth," said Chief Executive Officer George Maxwell.
Current stock price: 545.00 pence
12-month change: up sharply from 200.00p
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Vaalco Energy (EGY)
Glencore (GLEN)