EMAS ENERGY MULTI-YEAR CHEVRON CONTRACT
EMAS Energy has an existing 3-year contract with Chevron to provide one Plug & Abandonment (“P&A”) unit up to June 2015
Chevron has awarded EMAS Energy a new contract structure of 4 + 1 years which entails: - Extension of the existing contract for the current P&A unit provided - Award of a second P&A unit plus a lift-boat
The second P&A unit with the lift-boat is expected to commence around April/ May 2014 - Expected strong cash flows of approximately US$1mm per month - Lift boat will be chartered-in - Capex for the second P&A unit of approximately US$8mm will have to be incurred over the next 5-6 months starting Oct/ Nov 2013 FINANCING ASK
The request is for a US$5mm facility for a period of up to 3-years to help bridge the capex needs of the second P&A unit upfront
We are confident that the cash flows to be realized from the multi-year contract once it commences will be sufficient to amortize the initial draw of the facility
Undrawn portions of the facility can be used to support working capital needs of the business going forward