- Major Dutch bank ING enters into financing agreement for USD 135 million
- Bank of America on the verge of a financing agreement
- Energy Capital Partners increases commitment to USD 240 million
- Final plant and commissioning tests prior to gas production get off to a successful start
- Aurora Gas and Homer Electric sign long-term supply agreements
Luxembourg, 21 October 2015. ING Bank, New York, has signed an agreement on the ongoing financing of Deutsche Oel & Gas Group (DOGSA) in the amount of USD 135 million. Bank of America, New York, is also nearing an additional finance agreement for Deutsche Oel & Gas Group, after Deutsche Oel & Gas S.A. (DOGSA) increased its equity ratio to 97% by way of a debt-to-equity swap.
In light of this capital swap, energy infrastructure fund Energy Capital Partners, New Jersey, also upped its commitment from USD 200 to USD 240 million. These finance agreements keep DOGSA in line with its stated policy of financing via closed-end funds with private investors, through to financing with institutional investors.
“Thanks to our new finance agreements and the increased commitment from Energy Capital Partners, we as a company and our shareholders are benefiting directly from the debt-to-equity swap implemented a few days ago, and from our improved equity situation as a result. The excellent earnings prospects arising from the existing supply agreements and the official valuation reports for our gas reserves also contributed to this development,” said Kay Rieck, Chairman of the Board of Directors of Deutsche Oel & Gas S.A.
In order to permanently tap into another important source of financing, Deutsche Oel & Gas S.A. is planning a listing on the Open Market of the Frankfurt Stock Exchange after the start of natural gas production – either at the end of 2015 or the beginning of 2016, depending on the market situation.
Gas production was started on DOGSA’s production platform in the Cook Inlet in Southern Alaska during the course of a safety test. The supply agreements with Aurora Gas and Homer Electric have been signed. Delivery to the public gas network of Alaska is expected to begin in November 2015.
During the winter in Alaska gas will be supplied at the local market price on the open market in Alaska, as well as to the U.S. gas company Aurora Gas. As from 1 April 2016 the purchase of gas by Homer Electric, Alaska’s second-largest gas company, will be assured. As the agreements were entered into directly, without any intermediaries, DOGSA also achieves an attractive price, while at the same time allowing the purchasers of the gas to offer it at a very competitive price on the market.
Article in the Alaska Journal on the supply agreement between Homer Electric and Furie Operating Alaska (DOGSA subsidiary): http://www.alaskajournal.com/business-and-finance/2015-09-17/homer-electric-secures-lower-price-gas-deal-furie