Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) told investors it has secured a US$7mln revolving loan facility through an amended and restated loan agreement with a Trinidad-based lender.
Proceeds are intended to allow the oil and gas company to retain financial flexibility whilst it proceeds with the Royston-1X production testing operations and Cascadura facility construction.
The company, in a statement, said that the revolving loan agreement is in addition to its existing term-loan facility – which matures in June 2027, and, presently has a principal balance of US$25.5mln, with seventeen equal and consecutive quarterly principal payments of US$1.5mln outstanding.
It is a revolving loan with a one-year term, with annual options to extend, it carries a fixed interest rate - determined on the one-year term Secured Overnight Financing Rate (SOFR) plus an applicable margin per annum.
Once up and running, the Cascadura operation is expected to yield some 9,200 barrels of oil equivalent per day net to Touchstone and will be a considerable driver of cash flow.