LONDON, Aug 4 - Stratic Energy (SE.L) (SE.V) has reached an agreement with its banking syndicate for an amendment on its loan facility and an additional line of credit, the Toronto and AIM-listed oil and gas explorer said on Monday.
The banking syndicate agreed to defer debt repayments totalling $25 million until Stratic receives the proceeds from the sale of its Italian business, expected in the first three months of 2010. The repayments had been due at the end of 2009.
Stratic agreed to sell its Italian business to Enel Trade for 34.3 million pounds ($55.30 million) as part of a restructuring process which also saw it sell its UK North Sea Breagh gas field for $65 million in 2009.
The amendments agreed with the banking syndicate also provide Stratic with an additional $10 million line of credit, also to be repaid from the proceeds of the sale of the Italian business.
The North Sea-focused company said in November it was seeking deferral of scheduled debt repayments and additional liquidity from its banks ahead of the completion of the deal with Enel.
"The new banking arrangements provide us with increased near term flexibility to pursue our ongoing investment programme," said Stratic's chief executive Kevin Watts. Shares in Static were indicated 5.6 percent higher at 14.25 pence at 0834 GMT.
The banking syndicate agreed to defer debt repayments totalling $25 million until Stratic receives the proceeds from the sale of its Italian business, expected in the first three months of 2010. The repayments had been due at the end of 2009.
Stratic agreed to sell its Italian business to Enel Trade for 34.3 million pounds ($55.30 million) as part of a restructuring process which also saw it sell its UK North Sea Breagh gas field for $65 million in 2009.
The amendments agreed with the banking syndicate also provide Stratic with an additional $10 million line of credit, also to be repaid from the proceeds of the sale of the Italian business.
The North Sea-focused company said in November it was seeking deferral of scheduled debt repayments and additional liquidity from its banks ahead of the completion of the deal with Enel.
"The new banking arrangements provide us with increased near term flexibility to pursue our ongoing investment programme," said Stratic's chief executive Kevin Watts. Shares in Static were indicated 5.6 percent higher at 14.25 pence at 0834 GMT.
