Aurora Oil & Gas has secured a $300 million credit facility to fund ongoing exploration at its Sugarkane Eagle Ford oil and gas project in Texas.
Perth-based Aurora announced today it had signed a commitment letter with a syndicate of banks, comprising BNP Paribas Securities Corp, Credit Suisse Securities and UBS Loan Finance.
An initial payment of $85 million will be made available, which Aurora said would be funnelled into drilling programs at Sugarkane.
The credit facility remains subject to the stellement of definitive documentation and an updated report on Aurora’s proved and probable oil and gas reserves.
The funding will be provided through a five-year revolving credit facility,
“Aurora is very pleased to have put in place an attractive, flexible debt facility of a size that correlates our significant ramp-up in development drilling during the balance of 2011 and through 2012 and beyond,” Aurora chairman Jon Stewart said.
“The banking syndicate underwriting this facility have proven both responsive to our requirements and committed to a long-term relationship with the company.”
At 11:01AM (WST) Aurora’s stock was down 5 cents, at $2.20.
The Sugarkane Eagle Ford project covers 76,600 acres of oil and gas fields in Texas. The company expects to participate in around 60 new development wells during 2011.
