Aberdeen-based oil and gas firm Faroe Petroleum said today it has secured an extra £80million of funding.
The cash, which doubles an existing loan facility, will help to pay for already approved capital spending as well as operating and potentially acquisitions, it added.
Faroe has been exploration drilling in the UK North Sea and off Norway.
It recently struck oil on the Centrica-operated Cooper prospect, in which it is a partner.
Earlier exploration wells this year, Clapton and T-Rex were unsuccessful.
The firm is a partner in BP’s deepwater west of Shetland North Uist well, currently being drilled.
It will also be involved in the Rodriguez and Spaniards wells later this year.
Seven banks are involved in the loan, six of which were behind the original facility – BNP Paribas, Lloyds TSB Bank, Commonwealth Bank of Australia, DNB Bank, Royal Bank of Scotland and SEB. The new lender is SR Bank.
Faroe said that on June 30 it had a cash balance of about £103million.
It also has cash flow from projected annual production of about 20,000 barrels of oil equivalent per day, which is due to rise next year through developments and infill drilling on projects.