Ithaca Energy has outlined plans to become one of the North Sea’s biggest operators after securing a new finance deal.
The Aberdeen-based company has increased its reserve-based lending facility from £270million to £382million.
The contract – with BNP Paribas – allows the firm to “retire” the £218million bridge credit facility it established to acquire Valiant Petroleum earlier this year.
The firm has also set up a new £62.7million facility to fund new appraisal and development opportunities.
Graham Forbes, Ithaca’s chief financial officer, said the deal will allow the firm to become a big player in the UK Continental Shelf.
“I am delighted to close a heavily over-subscribed debt facility process, with a leading group of experienced oil and gas sector banks, and to be delivering improved financial terms and flexibility associated with the company’s senior debt funding,” he said.
“It is also particularly pleasing to put in place a corporate facility, which underlines the graduation of the company into a leading independent North Sea oil and gas operator”.
Xavier Venereau, global head of structured debt, oil and gas, at BNP Paribas, said: “Ithaca is a very important client for BNP Paribas in the North Sea and we are delighted to continue our support of the company through the establishment of these two new debt facilities.
“After having successfully completed the acquisition of Valiant, Ithaca has continued to actively monitor its portfolio and its developments.
“The company has an attractive portfolio of assets and an excellent reputation in the debt market, which was clearly demonstrated by the significant interest shown by banks in these new facilities. We look forward to continuing our support of the company and its growth strategy”.
The energy operator has launched a four-well development drilling campaign at the Greater Stella Area (GSA), which is due to reach first oil next year and hit 30,000 barrels per day.
GSA, which will cost about £630million to develop, could hold up to 40million recoverable barrels of oil equivalent.
In addition to Stella, the area includes the Harrier, Hurricane and Helios fields.