Circle Oil agrees further repayment extension

Projects belonging to Circle Oil
Projects belonging to Circle Oil

Circle Oil, the Middle East focused independent, has agreed to further extend the suspension of the December 2015 redetermination and any repayments due under its reserve-based lending facility.

International Finance Corporation has agreed to extend the suspension and repayments until June 24.

Circle holds a portfolio of assets in Morocco, Tunisia, and Egypt. The company is seeking a more stable and consistent payment system from Egypt’s state-owned oil company, which purchases the London-listed oil company’s production.

In the meanwhile, Circle is relying on its Moroccan operations and lenders providing repayment extensions.

The company has $77.5million worth of outstanding debt and has a market capitalisation of $11.3million.

Circle Oil is looking at all the options available, including the potential to merge or sell the company.