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Ithaca Completes RBL Redetermination

November 2, 2015

 

Ithaca Energy Inc. announced that it has successfully completed its planned semi-annual reserves based lending (“RBL”) facilities review and continues to maintain in excess of $125 million of funding headroom ahead of planned first hydrocarbons from the Greater Stella Area at the end of the second quarter of 2016.

As anticipated the Company commenced deleveraging the business in the second half of 2015, reflecting the benefit of strong operating cashflow generation, lower capital expenditures and the cash received from sale of the non-core Norwegian business. The reduction in debt has been further accelerated by $66 million from the recently completed equity investment in the Company by Delek Group Ltd.

The Company’s net debt has reduced from a peak of over $800 million in the first half of 2015 to under $690 million at 31 October 2015. It is anticipated that net debt at the end of this year will remain broadly unchanged from the current level.

Following the RBL redetermination process the Company’s available bank debt capacity is $515 million prior to Stella start-up, reflecting lower future oil price assumptions adopted by the banking syndicate. When combined with its $300 million senior unsecured notes, the business continues to maintain funding headroom in excess of $125 million.

Graham Forbes, Chief Financial Officer, commented, “We are pleased to have efficiently completed the RBL redetermination process and be able to re-confirm the solid funding headroom of the business. The Company has taken a number of proactive measures over the year to maintain a robust financial position during this period of lower and more volatile oil prices, ensuring it has the financial flexibility to manage downside risks and pursue potential opportunities within our core Greater Stella Area.”

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