Page 10 - EurOil Week 19 2021

EurOil INVESTMENT EurOil

Noreco closes $1.1bn RBL facility

DENMARK DENMARK’S second-largest oil and gas pro- drawing capacity of $1bn based on the current
ducer Noreco announced last week it had suc- borrowing rate, the company said.
Noreco said the cessfully closed its new $1.1bn reserve base The producer added that the facility would
financing manoeuvre lending (RBL) facility, replacing a previous include key performance indicators (KPIs)
would ensure it has $900mn facility. based on emissions intensity and renewa-
the funds for the Tyra Noreco said the refinancing manoeuvre ble electricity generation that will affect how
redevelopment. would ensure it “continues to have a strong capi- much of a margin it has to pay over the facility’s
tal structure and remains fully-funded to deliver duration.
the Tyra redevelopment project.” Tyra, Den- “The new, enlarged facility demonstrates
mark’s largest gas field, was closed in September the quality, longevity and value of our asset
2019, so that its subsiding platforms could be base, while also providing a mechanism to eco-
partly replaced. nomically incentivise the meeting of our ESG
The new facility will mature in 2028 with a objectives,” Noreco CFO Euan Shirlaw said in a
seven-year term that will amortise from the sec- statement. “The existing and new lenders in our
ond half of 2024, Noreco said. The margin pay- RBL bank group have reiterated their long-term
able remains in line with the borrowing cost of view of Noreco, and this confidence in our abil-
the existing RBL, and the facility also includes ity to deliver value for our stakeholders is highly
an accordion option of up to $400mn, which appreciated.”
Noreco said could be used “to support potential Noreco was set up in 2005, focused on oil and
future commercial opportunities.” gas production in Norway. The Oslo-listed com-
Noreco’s cash drawings under the existing pany later expanded into Denmark and the UK
RBL are $751mn, while the facility has cash and exited Norway in 2016. ™

Valeura to close Turkish

sale in coming weeks

TURKEY CANADIAN junior Valeura Energy reported “In the meantime, closing this sale will solidify
progress on May 7 in the planned sale of its con- our increased cash position, which will facilitate
Valeura is also seeking ventional shallow gas assets in Turkey’s Thrace Valeura pressing forward with our inorganic
a partner with technical basin to local producer TBNG. growth strategy.”
and commercial Valeura agreed on the $15.5mn sale in Valeura is also seeking a partner with tech-
expertise to take its October last year, in order to raise cash to fund nical and commercial expertise to take its deep
deep gas play project potential merger and acquisition activity and gas play project forward. It had been partnered
forward. to further appraise its undeveloped deep tight with Equinor, but the Norwegian company with-
gas play in Thrace. However, it said last month drew from the project in early 2020. Equinor had
it had agreed with TBNG to delay the long stop funded much of the work at the site up until then.
date for the sale from April 18 until July 30, to TBNG’s shareholders are Ian Hannam, the
secure a remaining government approval. That founder of London-based investment bank
approval has now been given, Valeura said last Hannam & Partners, along with TNBG’s man-
week, and the deal’s closure is anticipated in the agement team. ™
coming weeks.
In addition to the $15.5mn sum, Valeura will
also be entitled to royalty payments for five years.
Their size will depend on local gas prices and will
range from between $1mn and $5mn in total.
The company expects its cash balance to expand
to $44mn once the deal is completed.
“We remain committed to Turkey, and our
longer-term plans to further appraise our 20
trillion cubic feet (566bn cubic metre) unrisked
mean prospective resource deep tight gas play
remain intact,” Valeura CEO Sean Guest said.

P10 www. NEWSBASE .com Week 19 13•May•2021