AWE secures refinancing loan facility
Friday, June 1 2012 - 03:41 AM WIB
Australia-listed oil and gas firm AWE Limited said it has secured a $300 million multi-currency bilateral loan facility. This new facility will be used to refinance AWE?s existing $150 million syndicated bank facility that matures in December 2012.
The facility was self-arranged and AWE has accepted offers from Australia and New Zealand Banking Group Ltd, BOS International (Australia) Ltd and Westpac Banking Corporation for $100 million each. The new facility is unsecured and has a term of 3 years.
?The company appreciates the strong support we received from existing and new lenders in arranging this new facility. The refinancing clearly demonstrates the strength of AWE?s core business, particularly its production and development assets and the cash flows being generated from these assets,? AWE?s Managing Director Bruce Clement said.
?Importantly, the facility provides AWE with the financial liquidity and flexibility to deliver the company?s planned activities and support our growth strategies.?
AWE is currently embarking on developing its assets in Indonesia, including Titan PSC.
The company announced yesterday that it has commenced drilling of Atlas-1 well located within the Titan PSC in the offshore East Java basin. The well is located approximately 35 kilometers north east of the Lengo gas discovery, which tested gas at rates of up to 12.8 million cubic feet per day when drilled in 2008.
Atlas-1 is an exploration well designed to test the gas potential of a carbonate reservoir sequence that, together with the nearby Lengo gas discovery, could contain up to 1 trillion cubic feet of recoverable sales gas.
Editing by Roffie Kurniawan