Trinidad-based oil producer LGO Energy has agreed an early end to a banking arrangement with BNP Paribas, which will allow reduced repayment rates of $75,000 per month for the next three months.
The company and bank have agreed to early termination of the pre-paid swap in accordance with its existing terms and at its current value of $10.8million.
“As the company and the industry as a whole adjusts to the sustained low oil price environment, we are pleased to have reached this agreement with BNP Paribas,” said Neil Ritson, LGO chief executive.
“This will provide a firm financial platform for LGO to maintain the momentum of our oil production operations in Trinidad.”
From February 2016 it will repay the balance at a rate of 5% per month, for a period of 19 months. The final repayment will be due in September 2017.
LGO said it continues to have regular constructive discussions aimed at assisting it to establish a secure and sustainable platform for future investment.
The company said it expects to be actively discussing potential investments with clients of capital firms Wellford and Height during the next two months.
In separate news LGO said it has accepted the resignation of Iain Patrick as a director.
Steve Horton, the company’s Chairman, commented: “We would like to thank Iain for his contribution to the board and to wish him well with his various future endeavours.”
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