Business
Debt facility update
Debt facility update.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \n 10 November 2022\n \n \n Zephyr Energy plc\n \n \n \n \n (\"Zephyr\" or the \"Company\")\n \n \n \n \n \n \n \n \n Semi-annual redetermination results in\n \n \n 30% increase to availability under Revolving Credit Facility\n \n \n \n \n Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased to announce that the Company's lender, North-Dakota based First International Bank and Trust(\"FIBT\"), has completed its regularly scheduled semi-annual redetermination of the Company's revolving credit facility (\"RCF\").\n \n \n \n \n The redetermination process resulted in a 30% increase to the RCF, with the new borrowing base set at US$13 million. As of today, US$8 million is currently outstanding on the RCF, providing the Company with an additional US$5m of liquidity which can be drawn at Zephyr's discretion. In addition to the RCF, at 1 November 2022, Zephyr had an additional US$15.8 million of outstanding borrowings, the majority of which is comprised of a senior bank term loan with FIBT.\n \n \n \n \n \n As of today's date the Company has more than US$18.5m in available liquidity taking into account its current cash balances and the increased headroom on the RCF.\n \n \n \n \n \n The next semi-annual redetermination of the RCF is scheduled to take place in the second quarter of 2023.\n \n \n \n \n \n Colin Harrington, Zephyr's Chief Executive, said: \"The successful redetermination and resulting 30% increase to the RCF borrowing base is an excellent testament to the strength of Zephyr's underlying assets - and the increased debt capacity is particularly notable in light of the Company's production revenues of over US$25 million during the first half of 2022.\n \n \n \n \n \"We expect to continue to generate strong free cash flow for the foreseeable future, which in turn will fund the planned expansion of both our operated and non-operated asset portfolios.\n \n \n \n \n \n \"I would like to thank FIBT, a regional bank with over 110 years of history in North Dakota, and its team for their continued strong support of Zephyr.\"\n \n \n \n \n \n Contacts:\n \n \n \n \n \n \n \n \n \n \n \n \n \n Zephyr Energy plc\n \n \n \n Colin Harrington...