FURTHER INCREASE IN CREDIT FACILITY TO STEP UP NCS EXPLORATION AND APPRAISAL ACTIVITIES
Spring Energy, Press release, 29 June 2009.
Spring Energy is pleased to announce that it has secured a NOK 1 000 million exploration loan facility with a banking group comprising Merchant Banking, Skandinaviska Enskilda Banken AB ("SEB"), DnB NOR ("DNB") and BNP Paribas ("BNPP").
Under the Norwegian tax regime, exploration focused companies recover 78% of exploration and appraisal related expenditure in December the following year. The credit facility provides pre-funding of approximately 75 percent of the Company's exploration, appraisal and supporting expenditure, thereby quadrupling the capital available for investment in exploration and appraisal activities.
This facility further strengthens Spring Energy's financial position and will allow Spring Energy to increase its exploration and appraisal activities on the NCS and take advantage of attractive opportunities available in the transaction market. Establishing banking relationships with such a strong group of energy focused banks, is also an important step in Spring Energy's future development towards becoming a fully integrated E&P company.
SEB has acted as the Agent and Co-ordinating Mandated Lead Arranger on the NOK 1 000 million Revolving Exploration Facility, which was substantially oversubscribed by the banks.
The exploration loan facility together with the equity finance commitment of USD 120 million from HitecVision, enables Spring Energy to pursue an ambitious exploration and appraisal driven growth strategy over the next couple of years.
The facility is conditioned upon a final Loan Agreement between the parties.
END
Dated: 29 June 2009
Spring Energy Norway AS
For further information contact:
Roar Tessem, CEO, Spring Energy
Mob: +47 90666764
Email: roar.tessem@springenergy.no
Or
Lars Husby, CFO, Spring Energy
Mob: +47 48400415
Email: lars.husby@springenergy.no
About Spring Energy:
Spring Energy is an Oslo-based independent Norwegian upstream oil and gas company actively pursuing growth
opportunities in both mature and immature areas on the Norwegian Continental Shelf (NCS).
Spring Energy has through successive license applications and farm-in transactions built a considerable portfolio of
exploration and appraisal assets across the NCS. The Company's portfolio provides a balanced spread of risk and reward, encompassing 13 licenses with a fully funded drilling program consisting of a total of 8 wells to be drilled over the next 3 years.
Spring Energy is financially backed by HitecVision and has employed a highly experienced team of professionals focused on creating value for its shareholders.
For more information about Spring Energy, please see www.springenergy.no.