DNO increases, extends reserve-based and exploration financing loans

By Sarah Lizee

Olympia, Wash., Nov. 15 – DNO ASA wholly owned subsidiary DNO North Sea plc, formerly Faroe Petroleum plc, has increased and extended its reserve-based lending facility and its exploration financing facility, according to a notice.

As amended, the RBL facility limit has been increased to $350 million from $245 million, and an additional tranche of $350 million will be available on an uncommitted accordion basis.

The final maturity date of the RBL facility has been extended to November 2026.

The RBL facility covers DNO's Norwegian and U.K. assets and is available for both debt financing and issuance of letters of credit.

Similarly, the exploration financing facility limit has been increased to NOK 1 billion from NOK 700 million, and an additional tranche of NOK 500 million is available on an uncommitted accordion basis.

The final maturity date for the exploration financing facility will be year-end 2023.

The exploration financing facility, based on the Norwegian exploration cost refund system, will cover a major part of DNO's exploration and appraisal expenditures in Norway.

Danske Bank and ING Bank acted as coordinators for the facilities. Both facilities also involve BMO Capital Markets, Royal Bank of Scotland, SEB, SpareBank 1 Sr-Bank and Wells Fargo.

Oslo-based DNO is an oil and gas operator focused on the Middle East and the North Sea.

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