Tap Oil says it has raised $US50 million in debt funding for its Manora oil development in Thailand and a further $20 million for working capital.
Tap said the 10-year project facility with Commonwealth Bank would be drawn down in the second half of the calendar year and paid back within 24 months of first production from Manora.
The separate $20 million corporate facility, also with CBA, is split between a $10 million revolving facility available for general corporate purposes and $10 million as a contingency in the event of any cost overruns on Manora.
"The debt facilities, along with Tap's current cash balance of $84 million and its ongoing revenue from its third party gas contracts, provides the company with considerable flexibility in funding the development at Manora, undertaking exploration activities and taking advantage of other opportunities as they arise," Tap said in a statement.
First production from Manora is expected in early 2014.
Key contracts have been awarded and construction has begun on the platform and floating storage and offloading vessel.
Tap's managing director and chief executive Troy Hayden said securing the debt facilities marks another significant milestone in the development of the Manora oil field.
"We are currently working closely with the project Operator to ensure the Manora oil development continues to progress on budget and on schedule for first oil in early 2014," he said.
Pearl Energy is project operator at Manora with a 60 per cent interest, while Tap holds the remaining 40 per cent.
Proven and probable reserves of the field are estimated at 24 million barrels of oil.Tap shares were up half a cent to 64.5 cents at 8.20am.
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