Ithaca Energy Extends Debt Facility

Ithaca Energy Inc. has announced that it has executed extended and simplified bank debt financing facilities totalling $650 million, providing the Company with significant funding headroom ahead of first hydrocarbons from the Greater Stella Area in the second quarter of 2016.

Highlights

• Total bank debt facilities sized at $650 million, comprising a senior Reserve Based Lending facility of $575 million and junior RBL facility of $75 million
• Replacement of the former corporate facility with a junior RBL removes the use of historic financial covenant tests from the debt facilities and ensures the funding capacity is reflective of the future value of the Company's assets
• The term of both bank debt facilities is now extended to September 2018
• Total Company debt funding capacity of $950 million with inclusion of the $300 million senior unsecured notes due July 2019
• Forecast peak debt requirement prior to Stella start-up of $825-850 million in the second quarter of 2015, resulting in headroom of over $100 million

Graham Forbes, Chief Financial Officer, commented: "We are pleased to have promptly and efficiently extended the tenor of our RBL facility on terms similar to our existing facility and converted our corporate facility from one based on historic covenants into a forward looking junior RBL thanks to the strong support of our banking syndicate. The facilities are 'right sized' for our needs as we begin the process of deleveraging the business following completion of all offshore drilling operations prior to Stella first oil and receipt of the proceeds from the sale of the Norwegian business expected in Q3-2015."

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