Camac receives US$100mn loan to boost Nigerian offshore activities

CAMAC-Petroleum-Africa Camac Energy's new credit facility offers flexible funding to develop the Oyo field. (Image source: Camac Energy)Oil and gas exploration company Camac Energy has been awarded a five-year US$100mn loan deal from Nigeria’s Zenith Bank to grow its offshore assets in the country

The company, who holds the Oyo-7 development well, last month revealed it discovered new oil and gas reservoirs in its Oyo-8 development.

“This new credit facility provides Camac Energy with flexible funding at a reasonable cost to continue development of the Oyo field,” Earl McNiel, Camac Energy senior VP and CFO was quoted as saying.

The credit facility was offered to the oil explorer at an interest rate of Libor plus 7.5 per cent, under the terms of a floor of 9.5 per cent with a security package. According to Camac Energy, the package has a legal charge over oil mining licenses 120 and 121 in Nigeria’s offshore, in addition to an assignment of proceeds from oil sales.

The oil and gas company has listings on the Johannesburg and New York Stock Exchanges and is currently searching for oil and gas in Kenya’s Lamu Basin through its Kenyan subsidiary.

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