Africa-focused oil and gas company VAALCO Energy has entered into a new revolving credit facility with an initial commitment of $190 million and the ability to grow to $300 million, which will be used for its investment programs across diversified asset base over the next few years.
The loan facility has been granted by The Standard Bank of South Africa Limited, Isle of Man Branch with other participating banks and financial partners
Subject to customary administrative conditional precedents, the facility replaces the company’s existing undrawn revolving credit facility that was provided by Glencore Energy UK.
The company arranged the new facility primarily to provide short-term funding that may be needed from time-to-time to supplement its internally generated cash flow and cash balance as it executes its planned investment programs across its diversified asset base over the next few years.
“Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects.
“With $190 million in initial commitment and the ability to grow to $300 million, this facility enables us to fund any short-term capital funding needs that may occur as we execute the significant growth projects across our assets over the next couple of years.
“We appreciate the support shown by our lending group which we believe affirms the strength of our diverse asset base. We are excited about the major projects that we have planned which are expected to deliver a step-change in organic growth across our portfolio,” said George Maxwell, VAALCO’s Chief Executive Officer.