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Trondheim, December 21h 2011
Ensures financing of development
Det norske oljeselskap ASA is pleased to announce a fully underwritten, 500 million dollars revolving corporate credit facility. The facility contains an uncommitted increase feature (accordion) which, if fully utilized, would increase the Facility Amount by up to a maximum amount of 100 million dollars.

The 500 million dollars tranche is co-ordinated by DNB and Nordea and fully underwritten by the Bookrunners and Mandated Lead Arrangers: DNB, Nordea and SEB, subject to an executed loan agreement. The underwriters intend to syndicate the facility to a select group of banks.

The loan agreement is targeted to be completed by no later than 1st March 2012. The Facility matures on 31. December 2015. DNB is documentation agent and facility agent for the Facility.

Det norske’s projected available liquidity for field developments, including tax receivables, at year end 2011, is approximately 800 million dollars including the facility amount.
Finansdirektr_i_Det_norske_Teitur_Poulsen         

“We are very pleased to have received such strong support from DNB, Nordea and SEB. The fact that these banks have offered to fully underwrite this facility is a great testimony to the quality of our asset base,” Det norske CFO Teitur Poulsen (picture) said.

 “Earlier this year, Det norske strengthened its equity base by increasing the share capital by approximately 15 percent, through a 10 percent share issue and conversion of convertible bonds.

This new equity combined with the Facility will underpin the funding of our field developments, with the first three developments being Jette, Atla and Krafla. These developments alone have the potential to generate an annual estimated EBITDA in excess of 2 billion kroner, at plateau production and based on current oil prices. Such cash flow generation, combined with the credit availability from the facility, will also serve as a significant funding source for the larger developments on Draupne and Aldous Major south,” Poulsen said.

 

In addition to the new facility, Det norske has an existing exploration credit facility of NOK 3 500 million. The exploration credit facility was recently reduced from 4 500 million kroner to NOK 3 500 million, by the company’s request. Det norske has also received confirmation from the Oil Taxation Office that it will receive exploration tax refunds of approximately 2 300 million NOK before year end 2011.



About Det norske: 

Det norske oljeselskap ASA (DETNOR) specialize in extracting petroleum resources on the Norwegian Continental Shelf (NCS). We are an ambitious company with significant exploration activity. Recently we have taken part in some major discoveries, Aldous being the single most important. We now face several development projects, among them Jette as operator, and Draupne.

Det norske has its headquarter located in Trondheim, and offices in Oslo and Harstad. As of today we are more than 180 employees.

Det norske is listed on the Oslo Stock Exchange with the ticker “DETNOR”.