Zephyr Energy, the Rocky Mountain oil and gas company, has announced that the Company's lender, North-Dakota based First International Bank & Trust ('FIBT'), has completed its semi-annual redetermination of the Company's revolving credit facility ('RCF').
The redetermination process reaffirmed the total collateral value of Zephyr's non-operated asset portfolio and resulted in no change to the amount available under Zephyr's existing US$15.15 million RCF. In addition, the interest rate on the RCF has been reduced to 10% per annum (from 11% per annum).
Following the redetermination process, the Group borrowings are circa US$27.4 million, a reduction from US$35.3 million at 1 January 2024, and consist of:
- US$7.2 million of amortising term loan (at 6.74% interest per annum)
- US$5.2 million of amortising term loan (at 10% interest per annum)
- US$15.0 million of debt drawn on the RCF (at 10% interest per annum).
The impact of the revised borrowing rates has resulted in a reduction in the Company's blended interest rate to 9.1% (down from 9.5% at 30 June 2024) and an overall reduction in annualised interest costs of circa US$150,000.
The next semi-annual redetermination for the RCF is scheduled to take place in the second quarter of 2025.
Colin Harrington, Zephyr's Chief Executive, said:
'I am delighted at the outcome of this semi-annual redetermination which both affirms the substantial value of our non-operated portfolio and further reduces our cost of capital.
'Our non-operated assets are long-lived and high margin and continue to provide a stable platform for our growth. I would once again like to thank our partners at FIBT for their strong support of Zephyr.'
Source: Zephyr Energy
