EBRD mulls granting USD 100 m loan to E&P company Hungarian Horizon Energy Kft
Monday, 21, September 2009 02:02:00 PM

The European Bank for Reconstruction and Development (EBRD) is considering providing a USD 100 million loan to Hungarian Horizon Energy Kft to enable the company to appraise and develop further its Hungarian oil and gas fields and increase Hungarian domestic production of oil and gas.

The facility will:

• refinance an existing Senior Credit facility (cc. USD 55 m outstanding), providing a longer horizon to the development programme;


• provide funding for the Company's expansion and development based on increasing production and borrowing capacity.

The project transition impact potential is expected to arise from
(i) more widespread private sector participation in the Hungarian upstream oil and gas sector, as the Bank will support HHE in establishing itself as a successful domestically-grown private E&P company;
(ii) technology and skills transfer, as the company will implement improved drilling techniques to reduce the environmental footprint of gas exploration and proprietary seismic data interpretation techniques which are successfully proving reserves in formerly neglected formations; and
(iii) higher standards of environmental and business conduct.

Hungarian Horizon Energy Kft is a privately owned Exploration & Production company active in the Hydrocarbon rich Panonian Basin of Hungary.

The project is also supported by Aspect Holdings, LLC (Aspect Energy) a Colorado-based private equity, and majority shareholder of HHE.

The facility will consist of USD 100 m Senior Secured Revolving Borrowing Base Facility, including a USD 35 m A-loan and a USD 65 m syndicated B-loan.

Total project cost is USD 130 million.