Calgary-based North Sea explorer Oilexco said a bank-syndicate deal to provide it with up to $1 billion in financing “has been delayed” along with the development of its Shelley oilfield to do uprecedented “liquidity and volatility issues in the credit markets”.
The company told shareholders Monday that its 2008 capital program was covered, but that it might have to find “alternative financing” for laters developments.
The news further affirms a report Scandoil.com wrote Friday about small to medium oil companies having to seek new sources of capital or risk seeing ambitious developments cut short.
Oilexco said “delays to the round rig” floating producer Sevan Voyager of Norway-based Sevan Marine will push back Shelley field production by a month. Sevan has been rattled by the credit crunch, its share-price at times appearing in free-fall on shipyard credit fears.
The delay means Oilexco will have to wait for the expected ramp up to 35,000 barrels per day of production until first-quarter 2009. New production wells are planned for between now and then at the Nicol and Caledonia oilfields, and the company told shareholders work to boost flows at the Balmoral floating production site is complete.
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