In November 2018, Eland Oil & Gas successfully refinanced its existing reserve-based lending facility (the "RBL Facility") with a new 5-year syndicated RBL facility in an amount of US$75 million, with the option to increase it to up to $200m via an accordion, subject to incremental production and reserves.
Following a redetermination, the borrowing base amount has increased from $103 million to $134 million and an initial accordion increase of $50 million is being underwritten by The Standard Bank of South Africa Limited and Stanbic IBTC Bank PLC, resulting in the commitments under the facility increasing from $75 million to $125 million. Of the commitments, $50 million is currently drawn.
Ron Bain, CFO, commented:
"I am pleased to announce the large increase in borrowing base on our RBL facility which demonstrates the hugely accretive quality of the new wells drilled on the OML 40 asset and the growth in value they bring to our shareholders. Since refinancing the RBL in 2018 into a longer-term facility we have the flexibility to diversify the capital structure of the company leveraging our position comfortably within our debt parameters and lowering the overall cost of capital."