CANADIAN oil and gas operator Oilexco said yesterday its Oilexco North Sea subsidiary had signed an agreement with the Royal Bank of Scotland to increase its credit line to about £500million.
Oilexco said the new arrangement, providing access to an extra £150million, would be used for developing new fields, purchasing equipment, giving protection against cost over-runs and potential decommissioning liabilities, and general corporate purposes.
Chief executive Arthur Millholland added: “We have made a number of discoveries in the past two years.
“The new debt arrangement not only gives us increased financing capacity, it also gives us the flexibility to pursue developments that will have the greatest impact on the company.”
Meanwhile, Antrim Energy said its Causeway well in the UK North Sea had drilled a significant oil column, which could represent a substantial addition to the development.
Oil dropped below $144 a barrel yesterday, but was still within sight of record highs reached in the previous session.
US crude was down $1.44 at $143.85 a barrel, below a high of $145.85 hit on Thursday, while London Brent fell $1.66 to $144.42.