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.