Aberdeen-based Faroe Petroleum said it signed two banking facilities for almost £300 million “which will provide substantial finance to underpin the company’s growth plans.”

Faroe is an independent oil and gas company focussing principally on exploration, appraisal and production opportunities in Norway and the UK.

Faroe said one facility is a $250 million (£200 million) reserve base lending facility which “is available to finance the relevant assets and approved capital expenditure, operating costs and acquisitions.”

It said that in addition to the committed $250 million, a further $100 million is available on an uncommitted “accordion” basis. 

The second facility is a 1 billion Norwegian Krone (£92.5 million)  facility which “has the capability to finance the majority of Faroe’s exploration and appraisal costs on the Norwegian Continental Shelf.”

In addition to the committed NOK 1 billion, a further NOK 0.5 billion is available on an uncommitted “accordion” basis.  

Faroe CEO Graham Stewart said: “We are very pleased to have concluded this financing exercise, and to have received such strong support from both our existing bank syndicate and new lenders. 

“The new facilities provide us with substantial funding to support the continuing growth of the group and the financing of our development assets.

“The combination of existing cash, these new credit facilities and cash flow from the company’s significantly enhanced portfolio of producing assets, ensures that we are funded to take advantage of the material development upside in our portfolio and continue to invest in our  value enhancing exploration programme on the Norwegian continental shelf.”

The facilities have been provided by BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo.   

Rothschild and Pinsent Masons advised Faroe and Watson Farley Williams advised the banks.