Forum Energy Plc Galoc Phase II Development Financing (1331U)
December 21 2012 - 5:29AM
UK Regulatory
TIDMFEP
RNS Number : 1331U
Forum Energy Plc
21 December 2012
FORUM ENERGY PLC
("Forum Energy" or the "Company")
Galoc Phase II Development Financing
Forum Energy, the UK incorporated oil and gas exploration and
production company with a focus on the Philippines, notes the
announcement made by Otto Energy Limited ("Otto") to the ASX today
in relation to the second phase of the development of the Galoc oil
field (SC-14) (the "Galoc field"), in which Forum has a 2.27%
interest through its wholly owned subsidiary, Forum Energy
Philippines Corporation ("FEPC").
Phase II of the development requires US$188 million from the
joint venture partners in order to drill and complete two subsea
wells tied into the existing infrastructure with a view to more
than doubling production from the current levels. The drilling rig
is expected to be mobilised in early Q2 2013, and first oil is
scheduled for the second half of 2013. For further details please
refer to Otto's announcement of today's date referred to above.
As joint venture participants in the Galoc field, Forum Energy
and FEPC, together with Otto and a subsidiary of Otto, have entered
into a facility agreement with BNP Paribas (the "Facility
Agreement") to provide a total of US$40 million project financing
for the Galoc field's Phase II development. Under the Facility
Agreement, FEPC will borrow US$2.58 million (the "Forum Tranche")
as part of its share of capital expenditure committed to the
development with the balance being funded from existing cash
resources.
Key terms of the facility are as follows:
-- 3 year tenor term loan facility will expire on December 31 2015
-- Repayments are to commence in Q1 2014
-- Interest costs at a competitive market rate
The Forum Tranche is secured on FEPC's interests in the Galoc
field and the Company's shares in FEPC and the Forum Tranche is
guaranteed jointly and severally by Forum Energy and Otto.
Subject to the satisfaction of conditions precedent, the first
drawdown of the facility is expected to be in Q1 2013.
In the year ended 31 December 2011, within Forum Energy's
audited revenues of US$12.7 million (2010: US$6.1 million),
production at Galoc generated US$10.1 million (2010: US$4.1
million). As noted in the Company's trading update of 24 October
2012 there was a planned, temporary suspension of production at the
Galoc field, whilst the Floating Production Storage and Offloading
vessel operating at the field was upgraded during the first half of
2012. Production at Galoc is now running at approximately 5,000
barrels of oil per day (gross).
For further information please contact:
Forum Energy Plc
Andrew Mullins, Tel: +44 (0) 1932 445 344
Executive Director & Company Secretary
Execution Noble & Company Ltd (Nominated Adviser &
Broker)
Harry Stockdale, Tel: +44 (0) 207 456 9191
This information is provided by RNS
The company news service from the London Stock Exchange
END
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