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Press release from Marketwire

Ithaca Energy Inc: New Debt Facilities

Thursday, October 10, 2013

Ithaca Energy Inc: New Debt Facilities

02:37 EDT Thursday, October 10, 2013

ABERDEEN, SCOTLAND--(Marketwired - October 09, 2013) - Ithaca Energy Inc (TSX VENTURE: IAE)

(LSE: IAE)

TSX VENTURE: IAENot for Distribution to U.S. Newswire Services or for Dissemination inthe United States Ithaca Energy Inc. New Debt Facilities 10 October 2013Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")announces that it has executed extended and improved long term seniorbank debt financing facilities and oil sales agreements.Highlights- Increased existing Reserve Based Lending ("RBL") facility from $430 million to $610 million, with enhanced terms in the form of a reduced margin cost and greater flexibility over future unallocated capital.This has enabled retirement of the $350 million bridge credit facility established to facilitate the Valiant Petroleum plc ("Valiant") acquisition in April 2013.- Established a new five year $100 million corporate facility, providing additional funding flexibility to add new appraisal / development opportunities to the existing portfolio.Graham Forbes, Chief Financial Officer, commented:"I am delighted to closea heavily over-subscribed debt facilityprocess, with a leading group of experienced oil and gas sector banks,and to be delivering improved financial terms and flexibilityassociated with the Company's senior debt funding.It is alsoparticularly pleasing to put in place a corporate facility, whichunderlines the graduation of the Company into that of a leadingindependent North Sea oil and gas operator".Xavier Venereau, Global Head of Structured Debt, Oil & Gas, at BNPParibas, commented:"Ithaca is a very important client for BNP Paribas inthe North Sea andwe are delighted to continue our support of the Company through theestablishment of these two new debt facilities. After havingsuccessfully completed the acquisition of Valiant, Ithaca has continuedto actively monitor its portfolio and its developments. The Companyhas an attractive portfolio of assets and an excellent reputation inthe debt market, which was clearly demonstrated by the significantinterest shown by banks in these new facilities. We look forward tocontinuing our support of the Company and its growth strategy".Further InformationThe $610 million RBL facility replaces both the existing $430 millionRBL facility that was put in place in May 2012 and the $350 millionbridge credit facility that was established in March 2013 to facilitateIthaca's acquisition of Valiant.This increased RBL facility is basedon conventional oil and gas industry borrowing base financing terms,with a loan term until June 2017, and is available to fund on-goingdevelopment activities and any producing asset acquisitions.Restrictions on the previous RBL facility regarding the distribution ofunallocated capital have been reduced, thereby allowing the Company toconsider the optimal allocation of future cashflow upon thecommencement of production from the Greater Stella Area hub.The corporate facility provides additional financial flexibility forthe Company to continue to deliver upon its strategy of securing lowerrisk organic growth such as the acquisition and appraisal ofundeveloped discoveries that have a strong fit within the existingportfolio.This facility is based on normal corporate debt covenants,relating to EBITDAX ("Earnings before Interest Tax Depreciation,Amortisation and Exploration costs") coverage of debt and interestobligations.Syndicate BanksThe banks involved in the financing facilities and respective roles inthe RBL facility are as follows:- BNP Paribas & Scotiabank - Bookrunners and Mandated Lead Arrangers.- Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda Banken AB (publ) and Societe Generale - Mandated Lead Arrangers.- NIBC - Manager.BNP Paribas was also sole Bookrunner and Mandated Lead Arranger of thecorporate facility.Oil Sales AgreementsAs part of completing the integration of the Valiant assets into theCompany's oil sales arrangements, Ithaca has entered into an extensionof its existing agreement with BP Oil International Limited for themarketing of niche grade crudes and its oil sales agreement with ShellTrading International Limited ("Shell") for production from the Cook,Dons, Causeway Area and Broom producing fields.Future volumes fromthe Stella field may also be included.This latter agreement includesthe ability for Ithaca, at its option, to receive pre-payments forfuture crude sales to Shell.- ENDS -Enquiries:Ithaca EnergyGraham Forbes gforbes@ithacaenergy.com +44 (0)1224 652 151Richard Smith rsmith@ithacaenergy.com +44(0) 1224 652 172FTI ConsultingBilly Clegg billy.clegg@fticonsulting.com +44 (0)207 269 7157Edward Westropp edward.westropp@fticonsulting.com +44 (0)207 269 7230Georgia Mann georgia.mann@fticonsulting.com +44 (0)207 269 7212Cenkos SecuritiesJon Fitzpatrick jfitzpatrick@cenkos.com +44 (0)207 397 8900Neil McDonald nmcdonald@cenkos.com +44 (0)131 220 6939RBC Capital MarketsTim Chapman tim.chapman@rbccm.com +44 (0)207 653 4641Matthew Coakes matthew.coakes@rbccm.com +44 (0)207 653 4871BNP ParibasSue Mingay sue.mingay@uk.bnpparibas.com +44 (0)207 595 3455Xavier Venereau xavier.venereau@bnpparibas.com +33 (0)1 4316 8212About Ithaca EnergyIthaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gasoperator focused on the delivery of lower risk growth through theappraisal and development of UK undeveloped discoveries, theexploitation of its existing UK producing asset portfolio and aNorwegian exploration and appraisal business centred on the generationof discoveries capable of monetisation prior to development. Ithaca'sstrategy is centred on generating sustainable long term shareholdervalue by building a highly profitable 25kboe/d North Sea oil and gascompany. For further information please consult the Company's websitewww.ithacaenergy.com.Not for Distribution to U.S. Newswire Services or for Dissemination inthe United StatesNotes"EBITDAX" is defined as earnings before interest, taxes, Depreciation,Amortisation and Exploration costs. EBITDAX is a supplemental non-GAAPfinancial measure that is not recognized under international financialreporting standards ("IFRS") and does not have a standardized meaningprescribed by IFRS. EBITDAX should not be considered as an alternativeto, or more meaningful than, net profit and comprehensive income orcash flows from operating activities as determined in accordance withIFRS or as an indicator of operating performance or liquidity.Management believes that EBITDAX is a useful supplemental measure as itprovides an indication of the results generated by the principalbusiness activities. The computations of EBITDAX may not be comparableto other similarly titled measures of other companies, and accordinglyEBITDAX may not be comparable to measures used by other companies.Forward-looking statementsSome of the statements and information in this press release areforward-looking. Forward-looking statements and forward-lookinginformation (collectively, "forward-looking statements") are based onthe Company's internal expectations, estimates, projections,assumptions and beliefs as at the date of such statements orinformation, including, among other things, assumptions with respect toproduction, drilling, well completion times, future capitalexpenditures, future acquisitions, potential future acquisition anddevelopment opportunities, cash flow, future allocation of cashflowfrom operations, potential for shareholder returns and uses ofavailable credit under the debt facilities. The reader is cautionedthat assumptions used in the preparation of such information may proveto be incorrect. When used in this press release, the words"anticipate","continue", "estimate", "expect", "may", "will","project", "plan","should", "believe", "could", "target" and similarexpressions, and the negatives thereof, whether used in connection withoperational activities, production forecasts, budgetary figures,potential developments or otherwise, are intended to identifyforward-looking statements. Such statements are not promises orguarantees, and are subject to known and unknown risks, uncertaintiesand other factors that may cause actual results or events to differmaterially from those anticipated in such forward-looking statements.The Company believes that the expectations reflected in thoseforward-looking statements are reasonable but no assurance can be giventhat these expectations, or the assumptions underlying theseexpectations, will prove to be correct and such forward-lookingstatements included in this press release should not be unduly reliedupon. These forward-looking statements speak only as of the date ofthis press release. Ithaca Energy Inc. expressly disclaims anyobligation or undertaking to release publicly any updates or revisionsto any forward-looking statement contained herein to reflect any changein its expectations with regard thereto or any change in events,conditions or circumstances on which any forward-looking statement isbased except as required by applicable securities laws. This information is provided by RNS The company news service from the London Stock ExchangeEND

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
RNS
Customer
Services
0044-207797-4400
rns@londonstockexchange.com
http://www.rns.com

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