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Eland secures funding to develop Opuama Field offshore Nigeria

08th January 2015

Eland Oil & Gas has finalised arrangements for a new reserves based lending (RBL) credit facility of up to USD 75m

Eland Oil & Gas has finalised arrangements for a new reserves based lending (RBL) credit facility of up to USD 75m
Eland expects the addition of future reserves and production growth to add to the size of the available RBL

The company has executed a facility agreement for up to USD 75m with Standard Chartered Bank (SCB), with the credit facility secured against OML 40 reserves.

The facility will be accessible by Elcrest Exploration and Production Nigeria Ltd, Eland's joint venture company, to continue the development of the Opuama Field in OML 40 and for Eland's general working capital purposes.

"I am delighted that we have signed this RBL facility,” said George Maxwell, CEO of Eland Oil & Gas. “The strong commitment from SCB in the current market conditions highlights the robustness and value of our asset base even accounting for the current lower oil price environment.”

Eland expects the addition of future reserves and production growth to add to the size of the available RBL.

SCB has committed USD 35m of the facility and will continue to act as lead arranger for syndication of the remaining USD 40m. Marketing of the syndication has already begun and completed commitments are expected in Q1 2015.

“The successful completion and availability of a long term debt facility will ensure the company has the financial capacity to execute work programmes on our assets,” Maxwell added. “As we progress with the development of these assets we see the opportunity to grow the facility substantially and we are looking forward to a long term relationship with the lead arrangers and the syndicate."

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