Elk Petroleum said the closing of the Grieve CO2 enhanced oil recovery project joint venture restructure as well as a $58million loan facility will occur in the next few weeks.
The company said its comes after Benefit Street Partners received final credit approval to provide Elk a $58million senior debt loan facility to be used in connection with the Grieve Project restructuring.
Elk managing director, Brad Lingo, said: “This is a great outcome for the Company. We can now make sure that there is a seamless fit between the Grieve Project JV restructuring with Denbury and the US$58 million senior debt financing with Benefit Street Partners.
“This avoids the Company having to make later changes in the JV restructuring agreements necessary to complete the debt financing. Overall, this makes successful completion of the transaction much lower risk for both Elk and our joint venture partner, Denbury.
“All three parties – Elk, Denbury and Benefit Street Partners are all working together to make this happen.”