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Oilman Jim's Private Blog


Igas Energy - Financing Update

IGas announces that it has now completed the repayment of its Secured Bonds at par value (100%) plus accrued interest through the drawdown of $25 million from the recently announced Reserve-Based Lending Facility ("RBL") with BMO Capital Markets. Accordingly, this transaction has no impact on net debt, which was £5.3 million as at 31 October 2019. The RBL has a five-year term, an interest rate of LIBOR plus 4.0% and matures in September 2024. 

Net production for the year to 31 December 2019 remains on track and at the top end of the range previously guided, between 2,200 - 2,400 boepd, with operating costs still anticipated to be $31/boe.  Assuming current exchange rate levels the company will generate c. £15 million of free operating cash flow in 2019 from the conventional business before administrative expenses, capital investment and finance costs.

Stephen Bowler, IGas CEO, said:

"It is very pleasing to announce the completion of the refinancing, which brings with it greater available capital to grow our conventional business, alongside a reduction of financing costs of c. $1 million on an annualised basis. "

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