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- 13 Feb 2008 09:50
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Stratic Energy Corporation
13 February 2008
STRATIC ENERGY CORPORATION
NEWS RELEASE
Stratic Secures US$150 million Bank Loan Facilities
CALGARY and LONDON, February 13, 2008- Stratic Energy Corporation (TSX Venture:
'SE', AIM 'SE.') ('Stratic' or the 'Company') announces that it has secured new
bank loan facilities totaling US$150 million, principally to finance its field
development programs.
The new facilities to be provided to certain subsidiaries of Stratic comprise a
$110 million senior, secured Borrowing Base facility and a $5 million working
capital facility, underwritten by The Royal Bank of Scotland plc ('RBS') and
Societe Generale Corporate & Investment Banking, as Joint Mandated Lead
Arrangers, and an Undeveloped Asset-Backed ('UDAB') Facility of $35 million led
by RBS, of which $22.5 million is initially underwritten. The Borrowing Base
and UDAB facilities have terms of five and three years, respectively. RBS is the
Structuring Bank for the facilities, the closing of which is subject to normal
loan market terms.
The Borrowing Base facility will be used principally to finance Stratic's share
of capital expenditure on its portfolio of development assets, including the
West Don oil field in the UK sector of the North Sea, the P8a Horizon West oil
field in the Dutch Sector of the North Sea and the Longanesi gas field in Italy.
The UDAB Facility is for funding expenditure on specified pre-development
assets. Additional assets can be added to both facilities over time, as projects
are advanced. The facilities will also be used to retire existing bank debt.
A field development program ('FDP') for the West Don oil field in the UK North
Sea was submitted for approval to the UK Government's Department for Business,
Enterprise and Regulatory Reform late in 2007. FDP approval is expected to be
received in the first half of 2008. Total capital costs of the West Don project
are expected to be about GBP 170 million (gross) (Stratic share 17.25%). The
field development plans for the Horizon West oil field in block P8a of the Dutch
sector of the North Sea and the Longanesi gas field in Italy are progressing
satisfactorily and are expected to be approved by the partners during the spring
of this year.
Peter Thomas, Stratic's Chief Financial Officer, commented: 'These debt
facilities will permit efficient financing of the development expenditure on our
key projects. We are delighted to have secured an underwritten financing package
on excellent terms during a turbulent period in credit markets. The facilities
will provide the flexibility we need for funding our asset portfolio as it
evolves, including development and pre-development assets.'
For further information contact:
Peter Thomas, Chief Financial Officer +44 20 77667920
Patrick d'Ancona, M:Communications +44 20 7153 1547
Canadian Investor Relations
Roger Fullerton +1 952 929 7243
Email:
roger.fullerton@straticenergy.com
Website:
www.straticenergy.com
About Stratic: Stratic Energy Corporation is a Canadian-incorporated
international oil and gas business focused on adding value principally through
the appraisal, development and production of existing discoveries, supplemented
by a low to moderate risk exploration program. Stratic's principal interests are
in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its
shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and
its principal operating office is in London, UK.
Forward-looking statements
This news release contains certain forward looking statements, which involve
assumptions with respect to future plans, production levels and results, and
capital expenditures. The reader is cautioned that all such forward looking
statements involve substantial risks and uncertainties and the assumptions used
in their preparation may not prove to be correct. Stratic's actual results could
differ materially from those expressed in, or implied by, these forward looking
statements and accordingly, the forward looking statements are qualified by
reference to these cautionary statements. The forward looking statements
contained herein are made as at the date of this news release. Stratic
undertakes no obligation to update or publicly revise forward looking statements
or information unless so required by applicable securities laws.
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