PHOENIX GLOBAL RESOURCES SECURES EXTRA FUNDING TO SPEED UP WORK PLANS
[ 16 Feb 2018 11:42 ]
LONDON (Alliance News) -
Oil and gas exploration & production firm Phoenix Global Resources PLC said Friday it has secured additional funding of USD100.0 million after amending funding from Mercuria Energy Trading SA, enabling an accelerated business plan for 2018.
Phoenix previously had a USD160 million bridging and working capital facility from Mercuria Energy, part of Mercuria Group.
Of this, USD100.0 million is to be converted into 194.4 million new Phoenix shares at 37.00 pence each.
The remaining USD60.0 million is to be restructured into a new convertible revolving credit facility of USD160.0, securing the extra USD100.0 million.
Phoenix plans to accelerate drilling and completions at its Argentinian operations in 2018, with capital expenditure expected to double for the year to USD190.0 million compared to USD90.0 million in 2017.
This year will be Phoenix's first full-year under its current guise. In July last year, Phoenix was created following the merger of Andes Energia PLC and Trefoli Holdings.
Drilling in 2018 will focus on moving forward with appraisal and development of Vaca Muerta and other unconventional resources in the Neuquen basin, which is in Neuquen province on the Chilean border. Of the forecast capex of USD190.0 million, around USD120.0 million of this has been budgeted for Neuquen.
Further work is to be carried out around Puesto Rojas in Mendoza province, where it has already drilling nine vertical wells. Further work is planned pending finalisation of new oil and gas regulations in the province, with a formalising decree expected in the first quarter of 2018.
Going into the second half of 2018, Phoenix aims to drill and complete the first horizontal wells in Puesto Rojas after appraising vertical wells.
In Neuquen province, it will move forward investment plans on the Mata Mora and Corralera licences. Phoenix plans to drill unconventional horizontal wells, with drilling hoped to start in the first half of the year.
In the Cuyo and Austral basins, Phoenix plans to invest in further exploration and development wells in the former to increase oil production, as well as on Santa Cruz Sur licences in the Austral basin to boost gas production.
Shares were up 4.2% on Friday at 31.00 pence each.
By George Collard;
georgecollard@alliancenews.com
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