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10 Oct 2011 07:00
US$30m Bridge Facility with Macquarie Bank Ltd
Petroceltic International plc ("Petroceltic") is pleased to announce the agreement of a US$30 million Bridge Facility with Macquarie Bank Limited ("Macquarie").
On 7 October 2011 Macquarie approved a commitment in respect of a 12 month debt facility for up to US$30 million for Petroceltic, subject to the standard conditions precedent for this type of facility. The commitment is based on a credit approved term sheet and is subject to final documentation.
This facility, when concluded, may be applied towards the ongoing capital investment and working capital associated with Petroceltic's business in Algeria, the Kurdistan Region of Iraq and Italy.
In accordance with the terms of the commitment, Petroceltic has granted Macquarie 15 million warrants to subscribe for Ordinary Shares at a price of Stg4.52p. In addition, Macquarie may also be entitled to up to 25 million additional warrants based on drawdown of the facility or at certain fixed dates up to 31 December 2011. Warrants issued under the facility will be priced based on the weighted average share price of Petroceltic for the previous 20 trading days.
Should the facility be drawn, any amounts outstanding will be repaid in full from the proceeds from the sale of an 18.375% interest in the Isarene Permit in Algeria to Enel, announced on 28 April 2011, and which awaits final ratification by the Council of Ministers in Algeria. Amounts receivable by Petroceltic upon completion of the sale transaction currently exceed $95 million. The facility matures on 31 October 2012, and any amounts outstanding at that date may be convertible into ordinary shares in Petroceltic at Macquarie's option.
Brian O'Cathain, Chief Executive Officer of Petroceltic, commented:
"The Macquarie facility represents a strong technical, commercial and financial endorsement of Petroceltic's business and asset portfolio. While Petroceltic is funded to maintain the pace of our Ain Tsila appraisal programme, this facility guarantees that we can continue to build on recent operational success by focusing our efforts on preparations for the submission of the final discovery report in early 2012. We look forward to a positive relationship with Macquarie as both shareholder and lender".
Ends
For further information, please contact:
Brian O’ Cathain / Tom Hickey, Petroceltic International | Tel: +353 (1) 421 8300 |
Philip Dennis/Rollo Crichton-Stuart, Pelham Bell Pottinger | Tel: +44 (20) 7861 3919 |
Joe Murray / Joe Heron, Murray Consultants | Tel: +353 (1) 4980300 |
Hugh McCutcheon / John Frain, Davy | Tel: +353 (1) 679 6363 |
Notes to Editors:
Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Mediterranean and North African area, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has exploration and appraisal assets in Algeria, the Kurdistan Region of Iraq and Italy.
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