Forum Energy: Galoc Oil Field Gets Phase II Development Financing

LONDON--Forum Energy PLC (FEP.LN), a Philippines-focused oil and gas company, Friday said that along with its joint venture partners, it agreed a facility agreement with BNP Paribas to provide a total of 40 million dollars in project financing for the second phase of development at the Galoc oil field, offshore Philippines.

MAIN FACTS:

-Forum unit Forum Energy Philippines Corp will borrow $2.58 million as part of capex with the balance being funded from existing cash resources.

-Refers to announcement by 33% owner Otto Energy Ltd. (OEL.AU)

-3 year tenor term loan facility will expire on Dec. 31 2015

-Repayments start in 1Q14

-Interest costs at a competitive market rate

-Phase II requires $188 million to drill and complete two subsea wells tied into the existing infrastructure with a view to more than doubling production from the current levels.

-The drilling rig is expected to be mobilized in early 2Q13

-First oil scheduled for the 2H 2013.

-Forum shares at 1043 GMT flat at 87 pence valuing the company at GBP31 million.

-Write to Ed Ballard at [e-mail]

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