Andes Energia PLC US$5,000,000 debt facility (4440E)
February 09 2015 - 10:30AM
UK Regulatory
TIDMAEN
RNS Number : 4440E
Andes Energia PLC
09 February 2015
9 February 2015
Andes Energia plc
("Andes" or "the Company")
US$5,000,000 debt facility
The Board is pleased to announce that it has entered into a
US$5,000,000 debt facility (the "Facility") with Mercuria Holdings
(Cyprus) Limited ("Mercuria"). The proceeds shall be applied
towards the cash collateralisation of a bank guarantee to support
the mandatory offer the Company has an obligation to make for the
shares in Interoil Exploration and Production ASA ("IOX") further
to the announcement on 20 January 2015 and for general corporate
purposes. The Facility carries interest at a rate of LIBOR plus
9.5%, which can be capitalised, and is repayable 364 days from the
date of draw down.
As part of the Facility, Andes has also issued to Mercuria the
following instruments: (i) warrants over 4 million new Andes
ordinary shares ("Ordinary Shares") with an exercise price of 34p
per Ordinary Share, which are exercisable in the period from the
date of issue to the third anniversary of the date of issue and
(ii) an option over a number of new Ordinary Shares to be
calculated on the basis of the IOX share price (the "IOX Linked
Option"). If exercised, the IOX Linked Option will convert, at no
further cost to Mercuria, into a number of new Ordinary Shares not
to exceed 3 million and calculated by multiplying 20 million by the
difference between the IOX share price at the date of exercise and
NOK 0.11, converted into Sterling and divided by the volume
weighted average price of Andes's Ordinary Shares plus a premium of
5% for the 5 days immediately before the date of exercise. Andes
also has the option to satisfy the calculated Sterling amount in
cash. The IOX Linked Option is exercisable in the period from 12
months after the date of issue to the third anniversary of the date
of issue.
Alejandro Jotayan, CEO of the Company, commented: "The Facility
further enhances Andes's capital position following the recent US$5
million facility with Macquarie and conversion of US$9 million of
Ketsal S.A. debt into Andes shares. It provides Andes with
additional funding flexibility and strengthens our ability to fast
track various activities. We are very pleased to further develop
our relationship with Mercuria."
For further information please contact:
Andes Energia Nicolas Mallo Huergo, T: +54 11
plc Chairman 4110 5150
Alejandro Jotayan,
CEO T: +44 20
Billy Clegg, Head 3757 4983
of Communications
Macquarie Capital Jon Fitzpatrick T: +44 20
(Europe) Ltd Fergus Marcroft 3037 2000
Nick Stamp
Westhouse Securities Antonio Bossi T: +44 20
David Coaten 7601 6100
GMP Europe LLP Rob Collins T: +44 20
Emily Morris 7647 2800
Camarco Georgia Mann T: +44 20
3757 4986
Note to Editors:
Andes Energia is an oil and gas company focussed on onshore
South America with a market capitalisation of circa GBP167 million.
The Company has operations in Argentina, Colombia, Brazil and
Paraguay, representing three of the largest economies and three of
the four largest oil producing nations in South America.
The Company has 25.5MMbbls of conventional 2P reserves in
Argentina and Colombia and certified resources of 600MMBoe in
Argentina, primarily in the Vaca Muerta unconventional formation
and 7.75 million acres across South America.
The Company has approximately 2 million net acres in
unconventional plays including 250,000 net acres in the Vaca Muerta
formation, which is the second largest shale oil deposit in the
world and the only producing shale oil deposit outside of the USA.
Over 250 wells have already been drilled and fracked in the Vaca
Muerta formation.
Andes is the only AIM company on the London Stock Exchange with
exposure to Vaca Muerta.
The Company currently produces 3,200 bbls per day from 7
conventional fields in Argentina and 2 conventional fields in
Colombia, generating positive cash flow. Andes Energia, with its
partner YPF, has 30 wells planned over the next 12 months, which
are funded by field production cash flow.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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