North Sea operator Ithaca Energy has secured a new debt deal as it looks for potential oil and gas industry acquisitions.
The $610million debt facility replaces a previously arranged $430million lending and a $350million credit facility set up to allow Ithaca to snap up Valiant earlier this year.
The deal, brokered by BNP Paribas, will also allow the company a new $100million-a-year corporate debt facility to fund new appraisal or development projects over the next five years.
It also removes restrictions on the previous debt deal which will allow it to increase spending once production from the £630million Greater Stella Area project begins next year.
“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,” said Ithaca’s chief financial officer, Graham Forbes.
“It is also particularly pleasing to put in place a corporate facility, which underlines the graduation of the company into that of a leading independent North Sea oil and gas operator.”
The Aberdeen-based independent, which saw Les Thomas take over as chief executive last week, saw its pre-tax profits double in the first half of the year to $71.4million.
Ithaca has also extended its sales deal with Shell for production from the Cook, Dons, Causeway and Broom fields, along with possible future oil from the Stella field.
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