KrisEnergy Ltd.'s wholly owned subsidiary, KrisEnergy (Asia) Ltd., has entered into a facility agreement whereby KrisEnergy will be granted a US$100 million revolving credit facility maturing in March 2016 with an option to extend for an additional one year. The facility will be used for the acquisition of hydrocarbon assets, general corporate purposes and working capital requirements.
The facility, which is secured by the company’s current producing and development assets in the Gulf of Thailand and a producing block in Bangladesh, also contains an option to extend the full amount up to a maximum of US$140 million upon the addition of new hydrocarbon reserves in the proved plus probable (2P) category into the group’s portfolio. As of Dec. 31, 2013, KrisEnergy’s 2P reserves were 32.3 million barrels of oil equivalent as estimated by Netherland, Sewell & Associates Inc.
The facility was arranged by HSBC, which intends to syndicate to other banks subsequently.