Camac Petroleum Ltd., the wholly owned subsidiary of Camac Energy Inc. (NYSE MKT: CAK), entered into a five-year senior secured term loan facility with Lagos, Nigeria-based Zenith Bank Plc, Camac Energy said Sept. 8.
The loan provides up to US$100 million in initial borrowing capacity, the company added. Borrowings will have interest rates of Libor plus 7.5%, subject to a 9.5% floor, the company noted.
Proceeds from the facility will support the development of OMLs 120 and 121 offshore Nigeria, including the Oyo Field, Houston-based Camac Energy said.
"This new credit facility provides Camac Energy flexible funding at a reasonable cost to continue development of the Oyo Field,” said Earl W. McNiel, senior vice president and CFO of Camac Energy.
“The dramatic increases in production and cash flow we expect to achieve at Oyo will drive near-term growth and enable us to pursue our high-impact exploration program,” he added.
Camac Energy Inc. explores and produces oil and natural gas in Africa.
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