FX Energy Inc. (NASDAQ: FXEN) has finalized a new five-year, $100 million (maximum) Senior Reserve Based Lending Facility. BNP Paribas (BNPP) acted as coordinating mandated lead arranger. ING Bank, present in FX Energy's previous syndicated financing, acted as mandated lead arranger. The initial commitment of the facility amounts to $65 million. FX Energy can seek additional commitments up to $100 million through the new lending facility. The facility allows for such expansion under certain conditions via an "embedded accordion mechanism."
Xavier Venereau, BNPP’s global head of structured debt oil and gas, commented, "BNPP is very pleased to have successfully coordinated and closed this financing which will allow FX to support its growth in Poland, a country where it already ranks as the largest independent gas producer."
Clay Newton, FX Energy's vice president of finance, said, "The increased credit availability assures FX Energy of being able to fund its largest capital budget to date. The accordion feature in the new credit facility, together with higher production revenues as the Lisewo and Komorze wells start producing, should allow us to expand operations swiftly in response to a successful outcome in any of our exploration and appraisal projects this year."
FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration and production activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England.