Oil and gas exploration company Camac Petroleum has secured a five-year $100 million loan from Nigeria’s Zenith Bank to expand its offshore assets in the West African country.
The company had last month found four new oil and gas reservoirs in its Oyo-8 development. The energy company also holds Oyo-7 development well.
“This new credit facility provides Camac Energy (with) flexible funding at a reasonable cost to continue development of the Oyo field,” Earl McNiel, Camac Energy senior VP and CFO was quoted as saying.
The credit facility was given to the oil explorer at an interest rate of Libor plus 7.5 percent, subject to a floor of 9.5 percent, with a security package, which includes a legal charge over oil mining licences 120 and 121 in Nigeria’s offshore as well as an assignment of proceeds from oil sales.
According to McNiel, the substantial increases in production and cash flow the company expects to achieve at Oyo will drive near-term growth and enable Camac to pursue its high-impact exploration programme.
The oil and gas company with listings on the Johannesburg and New York Stock Exchanges, is also prospecting for oil and gas in Kenya’s Lamu Basin through its Kenyan subsidiary. It also added a shallow water acreage off Ghana to its growing list of hydrocarbon properties in March, and has exploration licence in Gambia.