Ophir Energy increases debt facility to repay Santos assets
UK-based Ophir Energy has increased and extended its existing Reserve Based Lending Facility (RBL) by US$100 million to US$350 million.
Ophir will now be able repay a facility used to fund the acquisition of a package of assets from Australia’s Santos.
The maturity of the RBL has been extended by 18 months, so it now matures on the 31st December 2025, restoring the original seven-year maturity, Ophir said on the 12th December.
The increase follows the completion of the acquisition of certain Southeast Asian assets from Santos announced on the 6th September 2018.
The increased and extended RBL will be secured against the group’s acquired producing assets in South-east Asia, including Chim Sao field in Vietnam and the producing fields in the Madura and Sampang PSCs in Indonesia.
According to Ophir, proceeds from the RBL increase will be used to fully repay the 18 month Bridge Facility that Ophir signed in August this year to partly fund the acquisition of a package of production and development assets from Santos.
“Having experienced a strong production performance during 2018, and with commodity prices ahead of budget for the majority of the year and lower capex payments, Ophir now expects to end the year with net debt of $65 million (with the RBL drawn down by US$250 million by early-January) versus previous guidance of US$110 million,” the company stated.
Additionally, with the increased RBL capacity, gross liquidity (cash and undrawn available borrowings) at year-end is expected to be US$360 million versus previous guidance of US$260 million.
Tony Rouse, CFO of Ophir Energy, commented: “We are pleased with the ongoing strong support of our relationship banks, evidenced by the integration of Santos assets into the company’s long-term debt facility. Our balance sheet remains strong and we expect to have greater liquidity at year end than previously guided.”
Source: Offshore Energy Today