Wentworth, the Oslo Børs and AIM listed oil and gas exploration and production company, announced the completion of a US$10 million long-term debt facility, further to their Q1 2013 results announcement of 23 May 2013.
On 20 June 2013, the Company executed a US$10 million term loan facility that matures on 31 December 2017. The loan bears interest of 6 percent per annum with interest only payments prior to maturity. The lendor is Vitol Energy (Bermuda) Limited, a Vitol Group company (Vitol). Vitol, a leading physical energy trading house, is also a shareholder of Wentworth. In combination with the loan, Vitol has been issued 5,000,000 share purchase warrants each exercisable into one common share of the Company on or before 31 December 2015 at an exercise price of US$1.24 per share. The proceeds from the loan will be used to repay the Company’s existing long-term loan from Tanzanian Investment Bank (approximately US$5.8 million, the “TIB Loan”) and to fund general working capital requirements. The TIB Loan bore interest of 9.18 percent per annum plus an annual agency fee of 0.5 percent.
Geoff Bury, Managing Director, commented: “This loan facility strengthens our balance sheet and our overall financial position and provides the resources and time necessary to complete a number of key milestones. We thank Vitol for their financial support and commitment and in the coming months we look forward to updating shareholders on our progress as we move through this important time for the Company.”