Explorer plans growth
Faroe secures £300m bank funding
Faroe Petroleum, the oil and gas company, has signed a near- £300 million refinancing package which will underpin the company’s growth plans.
A £200 facility has been agreed to finance assets and approved capital expenditure, operating costs and acquisitions, while a £92.5m loan will finance the majority of Faroe’s exploration and appraisal costs on the Norwegian Continental Shelf.
The facilities have been provided by BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo.
Rothschild and Pinsent Masons advised the xompany and Watson Farley Williams advised the banks.
Graham Stewart, chief executive of Faroe Petroleum said: “We are very pleased to have concluded this financing exercise, and to have received such strong support from both our existing bank syndicate and new lenders.
“The new facilities provide us with substantial funding to support the continuing growth of the Group and the financing of our development assets.
“The combination of existing cash, these new credit facilities and cash flow from the company’s significantly enhanced portfolio of producing assets, ensures that we are funded to take advantage of the material development upside in our portfolio and continue to invest in our value enhancing exploration programme on the Norwegian continental shelf.”
