Spring Energy has successfully amended its exploration loan facility with its banking group that comprises Merchant Banking, Skandinaviska Enskilda Banken AB, DnB NOR and BNP Paribas.
Spring Energy has secured commitments from the Lenders to increase the Facility amount from NOK1,000 million up to NOK1,500 million and extend the final maturity date by a further 1 year.
Under the Norwegian tax regime, exploration focused companies recover 78% of exploration and appraisal related expenditure in December the following year. The credit facility provides pre-funding of approximately 75 percent of the Company’s exploration, appraisal and supporting expenditure, thereby quadrupling the capital available for investment in exploration and appraisal activities.
The increased exploration loan facility together with the equity finance commitment from HitecVision, will enable Spring Energy to pursue an ambitious exploration and appraisal driven growth strategy over the next couple of years capitalising on the success achieved since the Company’s formation two years ago.
The facility is conditional upon an amendment agreement being executed by Spring Energy, the Agent and the Lenders.