Circle Oil secures $12.5m funding
LIMERICK-based oil and gas exploration company Circle Oil has secured $12.5m (€9.4m) to help fund exploration in Egypt.
The Middle East and Africa-focused company agreed a two-year working capital facility with Ahli United Bank Egypt.
It will be used for Circle's spending in connection with its 40pc interest in the North West Gemsa (NWG) concession in the north African country, freeing up its available cash balances – totalling about $20.5m – for other projects.
The facility is secured primarily on Circle's receivables from the Egyptian General Petroleum Company, to which it sells its production from NWG.
Circle's chief executive, Chris Green, said securing the facility was recognition of the quality of the company's assets in Egypt.
"The facility augments already- robust current cash balances and will release additional capital for investment across the group's area of operations as we develop senior debt options to accelerate company growth," he added.
Shares in the company rose fractionally yesterday afternoon following the announcement.
Egypt is a natural gas exporter to markets across the globe, including China and Chile. Exports of natural gas rose 2.9pc to $1.96bn in the 2011-2012 fiscal year ending in June.