Unprecedented funding secured for Alaskan exploration

unA landmark funding facility secured by Rampart Energy has secured backing for a large portion of the planned exploration at the company’s North Slope project in Alaska.
Upon the conclusion of using the US$50 million credit facility from Melody Business Finance – the loan origination branch of Melody Capital Partners – Rampart will have no net debt, as the capital provided will be paid back fully through the Alaskan Government’s repurchase of Tax Credit Certificates issued to Rampart.
Rampart is exploring two areas of the North Slope of Alaska for both conventional and unconventional oil, earning into two leases owned by Royale Energy. The North Slope region hosts the largest oil and gas fields in North America, with about 25 billion barrels of original oil in place. Rampart is earning into 38,000 net acres of the highly prospective Shublik/Kingak/Hue River shales with further scope for future dealings.
“This is a watershed event for the company and one that is almost unprecedented in the junior energy space on the ASX,” Rampart managing director and chief executive Torey Marshall said.
“Essentially, the facility provides for up to US$50 million to be spent on exploration with no shareholder dilution, thus creating a massive leverage to Rampart shareholders who are exposed to this money, without the fear of dilution that would come from a raising of its size.
“Given [the] company’s market capitalisation of $15 million, it is incredibly exciting for both shareholders and the company alike to have this in place,” he said.
Rampart planned to undertake a 120 square mile 3D seismic survey of the western block in February.
“The results of this survey will dictate the forward drilling program, and most importantly provide insight into the conventional targets that may be present in our exploration area,” Mr Marshall said.
“As with many other areas, the advent of 3D seismic in the North Slope has increased drilling success rates considerably, and Rampart uses it as a standard tool to de-risk drilling for our shareholders. “