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New $5million Senior Lending Facility at 4.75%
New $5million Senior Lending Facility at 4.75%.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1661B Nostra Terra Oil & Gas Company PLC 08 January 2018 \n\n08 January 2018\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nNew $5million Senior Lending Facility at 4.75%\n \n \nNostra Terra (AIM:NTOG), the oil and gas exploration company with a portfolio of assets in the USA and Egypt, is pleased to announce that it has received approval for a new US$5 million Senior Lending Facility (\"the Facility\") with Washington Federal Bank. US$1.2 million of the Facility will be immediately available for use on completion of the legal paperwork (\"Completion\"). Completion is expected to take place before the end of January. The interest rate is 4.75%.\n \nAbout the Senior Lending Facility\n \nThe Facility has an initial nominal amount of US$5 million, with US$1.2 million immediately available for use on Completion based on current production (\"Borrowing Base\"). The size of the Facility and Borrowing Base will be reassessed at least twice yearly. The board of the Company anticipates the Facility and Borrowing Base will increase with increased oil production, any further increases in the Company's Proven 1P oil reserves, and with use of the BP Energy Company Hedging Facility (as announced on 29 September 2017 and 19 October 2017). \n \nCurrently the size of the Facility and Borrowing Base have been determined solely upon stabilized production at Nostra Terra's Pine Mills asset. Recent reserves used by the bank were performed conservatively, with a \"sensitivity case\", using an oil sales price of US$36.50 per barrel or less for the next 6 years. With current oil prices nearly double that, hedging a portion of future production could significantly increase funds available. \n \nIncreased production across Nostra Terra's Permian Basin assets will further enhance the Company's position in this respect.\n \nThe interest rate on drawn down borrowings from the Facility is determined by the higher of either the sum of the Wall Street Journal Rate plus 0.25% or a flat 4.25%. The current Wall Street Journal Rate is 4.5%. As such the current interest rate applied to use of the Facility is 4.75%\n \nThe Facility is not restricted to geographical region. Nostra Terra can deploy funds from the Facility for operational purposes and acqu...