Faroe secures new loan facility to expand Norwegian exploration

Faroe Petroleum, the Aberdeen-based oil and gas explorer, has agreed a new loan package with its banks to support its growth plans in Norway.

The firm said it now has about £110 million available through its exploration financing facility – double the previous figure – and its maturity date has been extended by one year to the end of 2015.

All seven of its banks – BNP Paribas, Lloyds TSB, Commonwealth Bank of Australia, DNB Bank, Royal Bank of Scotland, SEB and SR Bank – are participating in the increased facility.

Faroe finance director Iain Lanaghan said: “The strong continuing support from our banks, all of whom participated, is a testament to the business, its prospects and assets.

“Alongside our robust production cash flows, our facilities provide us with greater funding capacity to support the development of the group in our core areas, both in terms of organic and acquisition growth.”