Stockholm December 17, 2012 (Aktietorget : COMQ)
Commodity Quest : Benchmark Oil & Gas receives credit facility of $10 million
Benchmark Oil & Gas Co. . Inc has received a ‘ term sheet ‘ for a new credit facility with a local bank. Agreement first tranche includes USD 1.8 million with the ability to expand to a total of $ 10 million . The credit is subject to a due diligence expected to be completed in February.
The credit facility will be used to repay existing debt and for seismic surveys, exploration wells, injection wells and recompletions.
“One of the major challenges Benchmark faced during the year has been the refinancing of debt that matured during the current year. In all, installments of $950,000 made, which greatly affected the company’s cash flow. At the beginning of the year was Becnhmark a loss-making operation, and it was hard to find a bank that was willing to finance the company. We started in March a discussion with a local bank where we forecasted profitability towards the end of the year. We have now surpassed the forecasts which were highlighted by the Energy Lending Department. They have now offered to become a financial partner in the development of the company, and with the conditions that we have received , we believe that the company is fully funded to realize the potential of the assets,” says Pål Mörch, CEO.