Boost for Circle Oil with $100m credit line
LISTED exploration company Circle Oil has secured a $100m (€75m) credit line.
The company said the four-year lending facility from International Finance Corporation (IFC) is to be made available to finance and refinance capital investment in operations in Egypt, Morocco and Tunisia.
It will be secured on the company's producing assets in Egypt and Morocco.
IFC's board approval means Circle Oil can take and hold up to $50m and syndicate the remainder to a group of international banks specialising in reserve-based lending to independent oil and gas companies. Circle Oil chief executive Professor Chris Green said the funding would give the company the financial strength to exploit its portfolio of assets throughout the Middle East and North Africa.
"This enhanced financial position will also give us greater ability to acquire additional projects and licences," he said.
"We are delighted with this approval and support from IFC."
Most of Circle's operations are in North Africa.
In September, the chairman of the listed company, Thomas Anderson, resigned in a surprise development at the company's annual general meeting. Mr Anderson said he felt that it was the right time to stand down.