MOG cashes up for Guendalina
Mediterranean Oil & Gas (MOG) has taken an €18 million ($27.4 million) credit
line from the Bank of Scotland, primarily to develop its interests in the
Guendalina field off Italy.
The first tranche, for €10 million, will go towards the company’s development
costs of the Guendalina gas field, where it holds a 20% stake.
Repayment of the first tranche will come from MOG’s share of Guendelina’s
production.
First gas from the field is scheduled for early 2010.
The second tranche, for €8 million, will be used for general corporate
purposes and to help costs towards other assets including the OM2
development and the Ombrina Mare field development.
The credit facilities are available for a 30 month period from the date of
agreement with an optional 30 month extension.
Interest rates on the loans range between 8.6 % and 9.4 % per annum, on a
fully drawn basis.
Company head Sergio Morandi said, “In addition to our ongoing revenue from
production, the company now has in excess of €33 million available to fund
our current work programme.”
05 March 2008 12:53 GMT
| last updated:
05 March 2008 13:04 GMT
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