US oil and gas explorer and producer FX Energy has secured a five-year credit facility of US$100mn.
BNP Paribas acted as co-ordinating mandated lead arranger (MLA), marking the first time the French bank has worked with the company. ING – which has a previous relationship with FX – also acted as an MLA. There is an option to extend the facility by an additional US$100mn.
The company is active in both the US and Poland with its main exploration and production activity being in Poland’s Permian Basin. This facility will help fund its ongoing activities.
Clay Newton, vice-president of finance at FX Energy, says: “We are pleased to begin a new banking relationship with BNPP, and we appreciate the continued support of ING. The increased credit availability assures FX Energy of being able to fund its largest capital budget to date. The accordion feature in the new credit facility, together with higher production revenues as the Lisewo and Komorze wells start producing, should allow us to expand operations swiftly in response to a successful outcome in any of our exploration and appraisal projects this year.”
Xavier Venereau, BNP Paribas’ global head of structured debt oil and gas, comments: “This new relationship with FX Energy is key to us and shows the importance for the bank to support oil and gas independent companies globally, and more specifically in the CEE and Turkey regions where we have built up a solid franchise. BNPP is very pleased to have successfully co-ordinated and closed this financing, which will allow FX to support its growth in Poland, a country where it already ranks as the largest independent gas producer.”