Posted by OilVoice Press - OilVoice
EnQuest announces the execution of an $80 million crude oil prepayment transaction and a $37.25 million refinancing for its Tanjong Baram project in Malaysia. These transactions directly provide EnQuest with over $100 million of additional financial resources. This is part of the ongoing programme of prudent measures to improve liquidity.
The $80 million crude prepayment entered into with Mercuria Energy Trading SA involves repayment in equal monthly instalments over 18 months, through the delivery of an aggregate of approximately 1.8 mmbbls of oil. EnQuest will receive the average Brent price over each month subject to a floor of $45 per barrel and a cap of approximately $64 per barrel. The prepayment transaction is being undertaken on an unsecured basis and at a cost lower than current interest on EnQuest's existing senior credit facility.
The $37.25 million Tanjong Baram financing entered into with Castleton Commodities Merchant Asia Co. Pte. Ltd is intended to replace the existing $11.35 million financing with the Development Bank of Singapore.
Both transactions are subject to certain conditions precedent including regulatory and lender approvals (where applicable).
EnQuest is one of the largest UK independent producers in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. Its operated assets include Thistle/Deveron, Heather/ Broom, the Dons area, the Greater Kittiwake Area, Scolty/Crathes Alma/Galia and Kraken; EnQuest also has an interest in the non-operated Alba producing oil field. At the end of June 2017, EnQuest had interests in 24 UK production licences and was the operator of 22 of these licences.
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