Noreco signed NOK 800 million loan facility
Stavanger, February 4th, 2008:
Norwegian Energy Company ASA (OSE:NOR), Noreco today signed a NOK 800 million loan facility agreement with Sparebank1 SR-Bank and DnB NOR. The facility will enable Noreco to finance up to 70% of its exploration and appraisal activities on the Norwegian Continental Shelf over the next two years.
– We are now well into our extensive exploration and appraisal programme of 30 wells over 3 years. Two wells have already been completed and another three are ongoing now. The loan facility ensures financing of the majority of this programme at a low cost to the company, says CEO Scott Kerr.
The agreement is a NOK 800,000,000 revolving loan facility and USD 25,000,000 guarantee facility agreement is entered into with Sparebank1 SR-Bank and DnB NOR as lenders and guarantors. The revolving loan facility shall be utilized to finance up to 70% of Noreco’s exploration activities in 2008 and 2009. The guarantee facility will be utilized in connection with a drilling contract entered into with Seadrill for the drilling rig West Alpha. The loan and guarantee agreement will be finally completed when customary conditions have been fulfilled.