Energean signs $180-million senior facility agreement to develop Prinos basin
LONDON -- Energean Oil & Gas has announced that it has signed a reserves-based senior facility agreement, amounting to $180 million, with the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the Export-Import Bank of Romania EximBank SA (EximBank Romania) and Banca Comerciala Intesa Sanpaolo Romania S.A (Intesa Sanpaolo Bank), HSBC acting as the agent bank. This Agreement is an extension to the existing $75-million loan signed with the EBRD on May 19, 2016.
The Agreement now includes two facilities: a senior secured reducing revolving credit facility of up to $105 million with the EBRD and BSTDB as lenders; and a senior secured revolving credit facility of up to $75 million arranged by EximBank Romania and having EximBank Romania and Intesa Sanpaolo Bank as lenders.
The expansion of the existing facility agreement will support the Company’s development program in respect of 41 MMboe (39.5 MMbbl oil/6 Bcf gas) 2P reserves and 23.8 MMboe (22.9 MMbbl oil /5.3 Bcf gas) 2C resources in the Prinos, Prinos North and Epsilon operating oil fields, located offshore Greece (Prinos basin). The financing will principally fund the ongoing development of the Epsilon oil field with GSP Offshore S.R.L, the appointed EPCIC contractor, as part of the ongoing Prinos development program that includes the drilling of up to 25 additional wells and construction of two additional well platforms by 2021 to materially increase production.