Sea Dragon Energy Inc. is pleased to report the closing of a 5-year senior secured US$ 50 million loan facility with BNP Paribas and HSBC Bank PLC.
The Facility provides the Company with access to additional capital, if and when required, as well as for future acquisitions. Capital spend program has been carried out with internal cash to date as the Company has no debt. This facility will provide increased financial flexibility.
The Company also announces that it has completed an internal reorganization resulting in the establishment of intermediate holding companies that will circulate proceeds of the financing and crude oil sales throughout the Sea Dragon group of companies to support operational needs.
The Facility includes customary provisions, borrowing base ratios and other covenants. The borrowing base is subject to routine semi-annual redetermination based on updated forecast reserves, production and receivables.
BNP Paribas commented: “This loan facility endorses the management of Sea Dragon with whom we have a long established relationship dating back to Centurion Energy. Its team of talented and experienced managers is well respected and highly regarded in the oil and gas industry, and in Egypt in particular. They are very well positioned to seize opportunities in their area of focus.”
HSBC commented: “We are pleased to finance a transaction in Egypt with a management team that has a strong local operational setup. This is the first such transaction in the country this year and more importantly, the first one since the Arab Spring”.
Said Arrata, Chairman and CEO of Sea Dragon commented : “We are extremely pleased to have closed on this facility with our relationship banks. This is a strong sign that both Sea Dragon and leading oil gas financiers are taking a positive long term view on doing business in Egypt. We are pleased to be leading the way back into the market with this financing. Both BNP Paribas and HSBC have a significant presence in Egypt. We look forward to executing on our growth strategy with their support.”