Closes US$20M Project Finance Facility and New US$30M Aces Revolver
Sydney, May 23, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) (US:BCGYF) is pleased to advise that it has executed binding agreements with New York based Richmond Hill Investment Co., LP for the provision of a US$20.0 million project finance facility ("the Facility").
The Facility uses a secured note issued by the Company's wholly owned subsidiaries, Buccaneer Alaska, LLC and Buccaneer Alaska Operations LLC, to be guaranteed by the Company. This type of funding allows for flexibility and limits shareholder dilution.
The Facility matures 17 January 2013 at which time the Company will either repay or refinance the Facility. This will enable the company to capitalize on the further development of its Cook Inlet assets prior to putting into effect a potential long dated financing alternative.
The funds raised from the project finance facility will be used for the following purposes:
- Kenai Loop # 2 well;
- Vendor payments;
- Transaction expenses; and
- General corporate & operational expenses
So as to provide additional funds under the Facility for project development, the Company has financed the acquisition of the Glacier # 1 rig from Marathon Oil Company, announced on 19 April 2012, with another party. An announcement on this transaction will be made in the next 5 days.
In addition to the above Facility the Company has also executed a US$30 million revolving credit facility with Richmond Hill to fund receivables under the State of Alaska, ACES exploration and development incentive program ("ACES Facility"). The new ACES Facility matures 31 December 2013.
This new ACES Facility replaces the facility put in place with Centaurus Capital, LLC in December 2011 and simplifies the Company's security arrangements with its lenders. It will also enable the Company to access additional development capital in the near term.
Buccaneer Director Dean Gallegos said:
"Putting together financing facilities totalling US$50 million in the current funding environment is a significant milestone for Buccaneer Energy. We are pleased to be working with Richmond Hill and we appreciate the cooperation of all our stakeholders while we have worked through the process.
Buccaneer is firmly committed to its Alaska strategy and we are looking forward to progress on our Kenai Loop project including our next well at Kenai Loop and our first offshore well later this year."
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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