20 Nov 2019 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
20 November 2019
IGas Energy plc (AIM: IGAS)
("IGas" or "the Company")
Financing Update
IGas announces that it has now completed the repayment of its Secured Bonds at par value (100%) plus accrued interest through the drawdown of $25 million from the recently announced Reserve-Based Lending Facility ("RBL") with BMO Capital Markets. Accordingly, this transaction has no impact on net debt, which was £5.3 million as at 31 October 2019. The RBL has a five-year term, an interest rate of LIBOR plus 4.0% and matures in September 2024.
Net production for the year to 31 December 2019 remains on track and at the top end of the range previously guided, between 2,200 - 2,400 boepd, with operating costs still anticipated to be $31/boe. Assuming current exchange rate levels the company will generate c. £15 million of free operating cash flow in 2019 from the conventional business before administrative expenses, capital investment and finance costs.
Stephen Bowler, IGas CEO, said:
"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 c. $1 million on an annualised basis. "
For further information please contact:
IGas Energy plc Tel: +44 (0)20 7993 9899
Stephen Bowler, Chief Executive Officer
Julian Tedder, Chief Financial Officer
Ann-marie Wilkinson, Director of Corporate Affairs
Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: +44 (0)20 7597 5970
Sara Hale/Jeremy Ellis/Neil Coleman
BMO Capital Markets (Joint Corporate Broker) Tel: +44 (0)20 7653 4000
Tom Rider/Neil Elliot/Jeremy Low/Tom Hughes
Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor/James Asensio
Vigo Communications Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon