Oslo, 19 June 2020: Norwegian Energy Company ASA ("Noreco" or the “Company”) is pleased to announce that its bank group has completed the scheduled June 2020 semi-annual borrowing base redetermination under the Company’s USD 900 million senior secured Reserve Based Lending Facility (the “Facility” or the “RBL”), which has resulted in Noreco’s borrowing base increasing by USD 188 million from USD 751 million at end December 2019 to USD 939 million at end June 2020.
This borrowing base increase reflects the significant operational progress made during the last year, including 2P reserves growth of 14 mmboe and a reserves replacement ratio of 177%. In addition, the facility has been amended to cater for capex add back, providing more flexibility for future investments and development of the borrowing base assets.
The Company’s borrowing capacity is now constrained only by the total size of the Facility. Further, under the current redetermination case, the borrowing base is expected to remain above the maximum the Company can draw under the Facility for the entire life of the loan.
Euan Shirlaw, the Chief Financial Officer of Noreco commented: “Delivering a significant borrowing base increase against a challenging backdrop in the oil and gas markets is a testament to both the long-term value proposition of Noreco’s participation in the DUC and the material price and volume hedging arrangements we have in place. The Company was already fully funded to deliver the Tyra redevelopment project prior to today’s announcement, however this increase in borrowing capacity provides the Company with additional headroom and flexibility that is invaluable in today’s market”.
Euan Shirlaw, CFO
Phone: +44 7979 690622
Cathrine Torgersen, EVP Investor Relations & Communications
Phone: +47 91 52 85 01