KrisEnergy loans $100M to buy oil and gas assets
KrisEnergy Ltd. has announced that its wholly owned subsidiary, KrisEnergy (Asia) Ltd, has entered into a facility agreement whereby KrisEnergy will be granted a $100 million revolving credit facility maturing in March 2016 with an option to extend for an additional one year.
The Facility will be used for the acquisition of hydrocarbon assets, general corporate purposes and working capital requirements.
The Facility, which is secured by the Company’s current producing and development assets in the Gulf of Thailand and a producing block in Bangladesh, also contains an option to extend the full amount up to a maximum of $140 million upon the addition of new hydrocarbon reserves in the proved plus probable (“2P”) category into the group’s portfolio. As at 31 December 2013, KrisEnergy’s 2P reserves were 32.3 million barrels of oil equivalent as estimated by Netherland, Sewell & Associates, Inc.
Keith Cameron, Chief Executive Officer, commented: “This is the sixth capital markets transaction we have undertaken in our brief five-year history and we continue to improve on pricing and terms with each arrangement. The Facility is another step in the optimisation of our balance sheet which is core to our strategy to ensure that we have the maximum flexibility in our capital structure to achieve our immediate targets of completing our development projects while concurrently achieving organic growth and seeking opportunities for mergers and acquisitions.”
The Facility was arranged by HSBC, which intends to syndicate to other banks subsequently.