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Under the terms of the facility, Buccaneer will have an initial available draw down capacity of $US12 million plus the ability to put in place a $US2.3 million letter of credit to finance the bond requirements associated with the Pompano project.
The remaining $US38 million will be incrementally available for draw down as additional wells are brought into production.
According to Buccaneer, the new credit facility replaces and refinances the $US5 million promissory note announced on June 3.
Buccaneer said the facility would be used to continue the development of the Pompano field including a third well, which is scheduled to be drilled in the next 30 days, development of its recently awarded 100% owned Jaguar project and further acquisitions under consideration.
As part of the transaction the company will issue Macquarie Bank with just over 9 million unlisted options valid until the facility matures on June 30, 2012.
