Australis Oil & Gas agreement with Macquarie Bank

Australis Oil and Gas Limited (ASX:ATS) has reached an agreement with Macquarie Bank Limited to amend its credit facility, providing the company with access to additional liquidity and flexibility. The amendments leverage the company's Proved Developed Producing (PDP) asset value, allowing for the establishment of a new discrete term loan credit facility (Facility C) and favorable adjustments to the existing debt amortization schedule.

Executive Commentary on Financial Flexibility

Mr lan Lusted, CEO, stated, 'The Board considers it prudent to utilize the value of our existing producing asset base to unlock an appropriate amount of additional liquidity and facilitate the favorable Credit Agreement amendments. This financial flexibility is a result of disciplined cash flow management and the scheduled reduction of the current Facility A loan over the past 3 years. The new agreement with our financier creates greater alignment between the debt repayment profile and our projected cash flow. The ability to draw against PDP replicates the flexibility of a traditional revolver facility and the structure of the new facility with the repayment profile fully covered by swap hedges, ensures minimal risk. Whilst we continue to work towards securing an appropriate partner for the field, these amendments offer financial security, liquidity, and flexibility in the near term.'

Summary of Agreement and Outlook

Australis Oil & Gas (ASX:ATS) has secured additional liquidity and flexibility through amendments to its credit facility with Macquarie Bank Limited. The agreement allows the company to access a new discrete term loan credit facility (Facility C) supported by the company's PDP reserves, triggering favorable adjustments to the existing debt amortization schedule and an extension of the maturity date of the Company's Facility A loan. The company can elect to implement the new Facility C at any time over the next 90 days. The terms of the new Facility C commitment provide the company with the flexibility to draw approximately US$6 million based on recent forward strip prices, with the loan to be repaid in full over a 24-month period. The amendments also include adjustments to the existing Facility A loan, suspending quarterly amortization payments until 30 September 2024 and extending the maturity date by 12 months to May 2026. The company's CEO, Mr lan Lusted, emphasized the financial security, liquidity, and flexibility offered by these amendments, highlighting the alignment between the debt repayment profile and projected cash flow. The company continues to work towards securing an appropriate partner for the field, and these amendments provide near-term financial stability and flexibility.