Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors that its borrowing base has increased as the company continues to progress its assets in America.
The company, in a statement, said its lender North Dakota-based First International Bank and Trust (FIBT) has completed a scheduled semi-annual redetermination of the company's revolving credit facility, resulting in a 30% increase.
Its new borrowing base is US$13mln, of which US$8mln has thus far been drawn.
Zephyr meanwhile noted that it has a further US$15.8mln of outstanding borrowings (the majority of which is a senior bank term loan with FIBT), and today it has some US$18.5mln of available liquidity.
"The successful redetermination and resulting 30% increase to the RCF borrowing base is an excellent testament to the strength of Zephyr's underlying assets - and the increased debt capacity is particularly notable in light of the company's production revenues of over US$25 million during the first half of 2022,” said chief executive Colin Harrington.
"We expect to continue to generate strong free cash flow for the foreseeable future, which in turn will fund the planned expansion of both our operated and non-operated asset portfolios.”