North Sea operator Dana Petroleum has been given a vote of confidence by the financial world after securing a £920million credit facility to fund future projects.
The agreement will refinance the company’s existing £530million facility as the oil producer, bought by the Korean National Oil Corporation (KNOC) in 2010 – caps a year of exploration successes.
The facility comprises an initial circa £600million, along with a further £300million which can be used for investment in the future, and was led by a syndicate of ten banks, including BNP Paribas and the Commonwealth Bank of Australia.
“This is a major vote of confidence in the company and our future growth plans,” said the Aberdeen firm’s chief financial officer David Crawford.
Last week Dana Petroleum revealed its Liberator find off the Moray coast could contain up to 15million barrels of crude oil, potentially worth over £1billion based on current prices.
This came on the back of successful North Sea gas finds at Tolmount and Pharos.
The company is also eyeing ambitious plans to establish a Central European gas hub after spending £27million to snap up licences in German and Danish waters from PA Resources UK earlier this week.
“We are in a strong position to move the company forward and grow our production in the years ahead,” said acting chief executive Graham Scotton.
“Our $1.6 billion Western Isles project, in partnership with Cieco, is also well under way with drilling on schedule and the FPSO build moving ahead in China.
“This project is developing two discovered oil fields in the northern North Sea and will bring 40,000 boepd onstream.”
KNOC said in October it aimed to raise £1.78billion by 2017 from local investors, including the National Pension Service, to help fund its future overseas acquisitions. The statement added that KNOC would continueto invest in exploration projects for Dana’s growth.
Dana, fully owned by KNOC, produces 50,000 barrels of oil per day, of which about 66% is produced in the North Sea.