Antares Energy (ASX: AZZ) has executed a Committed Letter of Offer for a A$188.5 million (US$200 million) debt facility to support development of the company’s Permian Basin oil and gas properties in Texas.
The 36 month Macquarie Bank (ASX: MQX) facility attracts an interest rate of LIBOR + 4% per annum, payable on a quarterly basis in arrears.
Antares has undertaken 15 wells in the Permian Basin over the past two quarters, a record level of drilling activity for the company.
The company will draw down just over A$47 million of the debt facility to fund a drilling program of no less than 30 wells, which will be completed by December 31, 2012.
Of the 30 wells, 24 will be drilled in the Southern Star project, which will result in the entire project being held by production.
The remaining 6 wells will be drilled in the Big Star and Northern Star projects.
Permian Basin focus
Antares has placed its focus on projects in the Permian Basin, selling off its Eagle Ford Shale projects, Yellow Rose and Bluebonnet, for A$188.5 million earlier this year.
That sale resulted in a net profit after tax of A$75.379 million.
http://www.proactiveinvestors.com.au/companies/news/21374/antares-energy-secures-1885m-loan-to-develop-permian-basin-oil-and-gas-projects-21374.html
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