Norway: Spring Energy Increases Exploration Loan Facility
Spring Energy has successfully amended its exploration loan facility with its banking group that comprises Merchant Banking, Skandinaviska Enskilda Banken AB , DnB NOR (“DNB”) and BNP Paribas
Spring Energy has secured commitments from the Lenders to increase the Facility amount from NOK1,000 million up to NOK1,500 million and extend the final maturity date by a further 1 year.
Under the Norwegian tax regime, exploration focused companies recover 78% of exploration and appraisal related expenditure in December the following year. The credit facility provides pre-funding of approximately 75 percent of the Company’s exploration, appraisal and supporting expenditure, thereby quadrupling the capital available for investment in exploration and appraisal activities.
The increased exploration loan facility together with the equity finance commitment from HitecVision, will enable Spring Energy to pursue an ambitious exploration and appraisal driven growth strategy over the next couple of years capitalising on the success achieved since the Company’s formation two years ago.
The facility is conditional upon an amendment agreement being executed by Spring Energy, the Agent and the Lenders.
About Spring Energy:
Spring Energy is a privately owned Norwegian oil and gas exploration, development and production company focused on the mature and immature areas of the Norwegian Continental Shelf.
The Company’s headquarters are in Oslo where it has a team of 29 highly experienced management and staff. The team has both high level technical and commercial competence and an excellent network of industry contacts which combine to give it a commercial edge.
Since its inception in 2007, the Company has already enjoyed considerable success. The active management of its portfolio through a combination of successful applications for acreage in NCS licensing rounds, acquisitions, exploration and the swapping of assets has resulted in a well balanced combination of quality exploration, appraisal and production assets.
With a consistent and focused strategy, the Company is rapidly striving towards its vision of becoming a highly profitable, fully integrated exploration, development and production company. The Company is backed by HitecVision, a private equity company with a track record of making sound strategic investments in the Norwegian oil and gas sector.
Source: Springenergy, June 21, 2010: