Zephyr Energy PLC increases its borrowing base
Zephyr Energy PLC (AIM: ZPHR, OTCQB: ZPHRF) told investors that its borrowing base had grown as the company continued to grow its assets in America.
The company, in a statement, said its North Dakota-based lender First International Bank and Trust (FIBT) had completed a scheduled semi-annual re-determination of the company’s revolving credit facility, resulting in a $30 increase. %.
Its new borrowing base is US$13 million, of which US$8 million has been drawn so far.
Zephyr meanwhile noted that it still has $15.8 million in borrowings outstanding (the majority of which is a senior bank term loan with FIBT), and that it now has about 18, $5 million in available cash.
“The successful re-determination and resulting 30% increase in the RCF borrowing base is an excellent testament to the strength of Zephyr’s underlying assets – and the increase in debt capacity is particularly noteworthy. in light of the company’s production revenues of more than US$25 million in the first half of 2022,” said chief executive Colin Harrington.
“We expect to continue to generate strong free cash flow for the foreseeable future, which in turn will fund the planned expansion of our operated and non-operated asset portfolios.”