LONDON (ShareCast) - AIM-listed independent oil and gas company Faroe Petroleum has signed an increased bank credit facility to provide substantial additional finance to support the company's growth plans.
The amount committed under the company's Exploration Financing Facility will be doubled to NOK 1bn (approximately £110m) from the initial NOK 500m commitment, according to a statement issued by Faroe on Friday morning.
The extended facility has been put in place to service Faroe's on-going active Norwegian exploration programme alongside an expected exploration tax rebate under the Norwegian taxation system.
The maturity date of the facility has been extended by one year to December 31st 2015.
Bank participants in increased credit facility
BNP Paribas (Milan: BNP.MI - news) , Lloyds TSB Bank, Commonwealth Bank of Australia (Other OTC: CBAUF - news) , DNB Bank ASA, Royal Bank of Scotland (LSE: RBS.L - news) , SEB (Paris: FR0000121709 - news) and SR Bank were named as participants in the increased facility.
Commenting on the new facilities, Iain Lanaghan, Finance Director, said:"We are very pleased to have concluded this financing exercise, which alongside the earlier increase in our reserve base lending facility, means we have doubled our committed debt facilities in 2012. The strong continuing support from our banks, all of whom participated, is a testament to the business, its prospects and assets.
"Alongside our robust production cash flows, our facilities provide us with greater funding capacity to support the development of the group in our core areas, both in terms of organic and acquisition growth," he added.
Faroe's producing assets include the Blane, Brage, Njord and Ringhorne East fields. The group, focuses principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway,