Circle Oil secures $12.5m to fund operations in Egypt

Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce that it has agreed a US$12.5 million (the “Principal Sum”) secured working capital facility (the “Facility”) with Ahli United Bank Egypt (“AUBE”). The Facility will be used to fund ongoing expenditures in respect of Circle’s 40% interest in the North West Gemsa Concession (“NWG”) in Egypt enabling Circle to use its available cash balances for alternative projects.

The Facility has a term of two years and is secured primarily on certain of Circle’s receivables from the Egyptian General Petroleum Company (“EGPC”) to which it sells its production from NWG. The Facility attracts interest at a rate of LIBOR plus 4.25 per cent. Under the terms of the Facility, Circle has the right to drawdown up to the Principal Sum to fund on-going expenditures in NWG, and at its option, may pre-pay any outstanding amount with accrued interest, subject to minimum repayment amounts of US$1 million.

Circle currently has cash balances of US$20.50 million.

Commenting on the Facility, Prof Chris Green, CEO, said:
“This Facility provides additional working capital for our Egyptian assets and is recognition of the quality of our producing assets in that country. The Facility augments already robust current cash balances and will release additional capital for investment across the Group’s area of operations as we develop senior debt options to accelerate Company growth”.

Press Release


Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password