Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa using an initial focus on Nigeria, is pleased to announce the following update on its Reserve Based Lending (“RBL”) facility.
Following the successful infill drilling of Opuama-8 the business has reprofiled its RBL facility featuring a lenders, Standard Chartered Bank, The Mauritius Commercial Bank Ltd and Mercuria Energy Trading S.A. The ability amount remains at $35million but the initial borrowing base amount has expanded from $40 million to $70.A million based on only Opuama-1, -3, -7 and -8 production and cash flows. Of the available facility, $27 million is actually drawn.
The RBL facility has been amended and restated with the same maturity of 30 June 2019, however, principal repayments will now not commence until March 2019. All your other terms of the facility remain the same. Funds will conservatively used, along with the regular cash inflows from Opuama production, to aid the funding of the remaining Opuama infill wells, growing Opuama’s production to around 30,000bopd in H1 2018, as well as supporting improvement other Company assets.
The Group’s current cash position is $35.Six million.
Ronald Bain, CFO of Eland, commented:
“The exceptional increasing amount of headroom, which equates to the size of the previous facility, from the introduction of the Opuama-8 well shows the hugely accretive quality of new well drilled on the OML 40 asset and the significant growth in value they convey to stakeholders. The Company continues its preparations to refinance the RBL in 2018 right longer-term facility based on Opuama’s full production potential and future OML 40 development.”