Ithaca Energy, the Canadian Oil and Gas corporation with a focus on the exploration and development of oil and gas reserves in the North Sea on the United Kingdom's Continental Shelf, announced today that the Bank of Scotland has agreed to be the lead arranger for a $140m facility to fund the development of the Stella field and the satellite discoveries.
The term sheet provides for $30m to be made immediately available. The Term Sheet is structured such that US$30 million is immediately available to the company on execution of the Facility documents. The company confirm that engineering scoping work has already started on the Stella development and satellite discoveries, named Harrier and Hurricane, based on the outcome of the Stella appraisal well and that a full development plan will be defined during 2010. Another US$110 million will also be made available to Ithaca for the Greater Stella Area development, based on an engineering assessment of the field, FDP approval and final credit approval. Flexibility within the facility also permits Ithaca to debt finance acquisitions of production assets subject to credit approval. Under the terms of the Mandate Letter, the parties will negotiate and finalize the facility documents on or before June 30, 2010. The board confirm that an update will be provided upon execution. CEO Iain McKendrick commented on the news:
"Further to our strong 2009 financial results and the very encouraging Stella appraisal well, the Company is well positioned to grow. "This facility provides a major building block towards funding the capital expenditure required for the development of the Greater Stella Area but also the flexibility to finance a significant acquisition."
