|Sea Dragon Energy closes a US$50 million loan facility|
|Monday, October 3, 2011|
Sea Dragon Energy Inc. is pleased to report the closing of a 5-year senior secured US$ 50 million loan facility with BNP Paribas and HSBC Bank PLC.
The Facility provides the Company with access to additional capital, if and when required, as well as for future acquisitions. Capital spend program has been carried out with internal cash to date as the Company has no debt. This facility will provide increased financial flexibility.
The Company also announces that it has completed an internal reorganization resulting in the establishment of intermediate holding companies that will circulate proceeds of the financing and crude oil sales throughout the Sea Dragon group of companies to support operational needs.
The Facility includes customary provisions, borrowing base ratios and other covenants. The borrowing base is subject to routine semi-annual redetermination based on updated forecast reserves, production and receivables.
HSBC commented: "We are pleased to finance a transaction in Egypt with a management team that has a strong local operational setup. This is the first such transaction in the country this year and more importantly, the first one since the Arab Spring".