(Alliance News) - Kosmos Energy Ltd on Wednesday announced it has successfully completed the re-determination of its reserve-based lending credit facility.
The deepwater exploration and production company focused along the Atlantic margins now has a borrowing base capacity of USD1.32 billion, a reduction of USD130 million from the previous drawn amount of USD1.45 billion. This is due to the lower global oil price
Kosmos said: "The reduction in borrowing base capacity is primarily the result of lower oil price assumptions from those assumed at the March re-determination, due to the continuing impact of Covid-19."
The lending credit facility is secured against the company's production assets in Ghana and Equatorial Guinea with the first amortisation payment scheduled for March 2022.
Kosmos' gas assets in Mauritania and Senegal remain unencumbered.
Chief Financial Officer Neal Shah said: "We are pleased to have successfully completed the September reserve based lending credit facility re-determination, and we thank our bank group for its continued support.
"With the recently announced Gulf of Mexico facility and this successful re-determination, the company has secured access to multiple sources of low cost, flexible financing. Our balance sheet is expected to be further strengthened by the proceeds of the Shell transaction this quarter and free cash generated by our low-cost production."
Kosmos shares were untraded at 85.00 pence each in London on Wednesday. They are down 80% in 2020 to date.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Kosmos Energy (KOS)