9 Feb 2015 15:30
9 February 2015
Andes Energia plc
("Andes" or "the Company")
US$5,000,000 debt facility
The Board is pleased to announce that it has entered into a US$5,000,000 debt facility (the "Facility") with Mercuria Holdings (Cyprus) Limited ("Mercuria"). The proceeds shall be applied towards the cash collateralisation of a bank guarantee to support the mandatory offer the Company has an obligation to make for the shares in Interoil Exploration and Production ASA ("IOX") further to the announcement on 20 January 2015 and for general corporate purposes. The Facility carries interest at a rate of LIBOR plus 9.5%, which can be capitalised, and is repayable 364 days from the date of draw down.
As part of the Facility, Andes has also issued to Mercuria the following instruments: (i) warrants over 4 million new Andes ordinary shares ("Ordinary Shares") with an exercise price of 34p per Ordinary Share, which are exercisable in the period from the date of issue to the third anniversary of the date of issue and (ii) an option over a number of new Ordinary Shares to be calculated on the basis of the IOX share price (the "IOX Linked Option"). If exercised, the IOX Linked Option will convert, at no further cost to Mercuria, into a number of new Ordinary Shares not to exceed 3 million and calculated by multiplying 20 million by the difference between the IOX share price at the date of exercise and NOK 0.11, converted into Sterling and divided by the volume weighted average price of Andes's Ordinary Shares plus a premium of 5% for the 5 days immediately before the date of exercise. Andes also has the option to satisfy the calculated Sterling amount in cash. The IOX Linked Option is exercisable in the period from 12 months after the date of issue to the third anniversary of the date of issue.
Alejandro Jotayan, CEO of the Company, commented: "The Facility further enhances Andes's capital position following the recent US$5 million facility with Macquarie and conversion of US$9 million of Ketsal S.A. debt into Andes shares. It provides Andes with additional funding flexibility and strengthens our ability to fast track various activities. We are very pleased to further develop our relationship with Mercuria."
For further information please contact:
Andes Energia plc | Nicolas Mallo Huergo, Chairman Alejandro Jotayan, CEO Billy Clegg, Head of Communications
| T: +54 11 4110 5150
T: +44 20 3757 4983 |
Macquarie Capital (Europe) Ltd | Jon Fitzpatrick Fergus Marcroft Nick Stamp
| T: +44 20 3037 2000
|
Westhouse Securities | Antonio Bossi David Coaten
| T: +44 20 7601 6100 |
GMP Europe LLP | Rob Collins Emily Morris
| T: +44 20 7647 2800 |
Camarco | Georgia Mann
| T: +44 20 3757 4986 |
Note to Editors:
Andes Energia is an oil and gas company focussed on onshore South America with a market capitalisation of circa £167 million. The Company has operations in Argentina, Colombia, Brazil and Paraguay, representing three of the largest economies and three of the four largest oil producing nations in South America.
The Company has 25.5MMbbls of conventional 2P reserves in Argentina and Colombia and certified resources of 600MMBoe in Argentina, primarily in the Vaca Muerta unconventional formation and 7.75 million acres across South America.
The Company has approximately 2 million net acres in unconventional plays including 250,000 net acres in the Vaca Muerta formation, which is the second largest shale oil deposit in the world and the only producing shale oil deposit outside of the USA. Over 250 wells have already been drilled and fracked in the Vaca Muerta formation.
Andes is the only AIM company on the London Stock Exchange with exposure to Vaca Muerta.
The Company currently produces 3,200 bbls per day from 7 conventional fields in Argentina and 2 conventional fields in Colombia, generating positive cash flow. Andes Energia, with its partner YPF, has 30 wells planned over the next 12 months, which are funded by field production cash flow.