Serica completes reserves-based lending redetermination

3rd Jul 2024 14:47

(Sharecast News) - Serica Energy announced on Wednesday that it has completed the first semi-annual redetermination under its $525m reserve-based lending (RBL) facility, increasing the borrowing base from $463m to the full committed amount of $525m.

The AIM-traded firm said the increase reflected its enhanced reserves and its recent hedging programme.

As of 26 June, Serica reported cash and cash equivalents of £301.6m and debt drawings of $231m (£182m).

As a result, Serica's liquidity now exceeded £500m.

"We are grateful for the support of our bank group in completing our first redetermination under the new RBL," said chief financial officer Martin Copeland.

"Serica's robust liquidity supports our ability to deliver on the two-pronged strategy of investing in our assets and executing on attractive merger and acquisition opportunities."

At 1428 BST, shares in Serica Energy were up 1.26% at 136.7p.

Reporting by Josh White for Sharecast.com.