egyptian capital

This is interesting. An AIM listed oil company, operating in Egypt has secured debt funding from an Egyptian bank secured against reserves. GIP has no oil but it has some mighty reserves,






20 December 2012
Circle Oil Plc

("Circle" or the "Company")


Working Capital Facility - US$12.5 Million

Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce that it has agreed a US$12.5 million (the "Principal Sum") secured working capital facility (the "Facility") with Ahli United Bank Egypt ("AUBE"). The Facility will be used to fund ongoing expenditures in respect of Circle's 40% interest in the North West Gemsa Concession ("NWG") in Egypt enabling Circle to use its available cash balances for alternative projects.

The Facility has a term of two years and is secured primarily on certain of Circle's receivables from the Egyptian General Petroleum Company ("EGPC") to which it sells its production from NWG. The Facility attracts interest at a rate of LIBOR plus 4.25 per cent. Under the terms of the Facility, Circle has the right to drawdown up to the Principal Sum to fund on-going expenditures in NWG, and at its option, may pre-pay any outstanding amount with accrued interest, subject to minimum repayment amounts of US$1 million.

Circle currently has cash balances of US$20.50 million.