OHM Off. Hydro

 

TIDMOHM 
 
RNS Number : 6884E 
Offshore Hydrocarbon Mapping PLC 
24 December 2009 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRESS RELEASE 
 
 
24 December 2009 
 
 
 
 
Offshore Hydrocarbon Mapping plc ("OHM" or "the Company") 
 
 
Credit Facility Agreement 
 
 
 
 
Offshore Hydrocarbon Mapping plc (AIM:OHM) is pleased to announce that it has 
agreed terms of a Credit Facility of up to $2 million with affiliates of its two 
largest shareholders, East Hill Hedge Fund, LLC ("East Hill") and Euro Trans 
Skips AS ("Seatrans")". 
 
 
At the time of OHM's results  announcement of 16th November we referred 
specifically to the possibility that further sources of funding may need to be 
secured in the event that the increasing level of enquiries and tender activity 
we were seeing at that time failed to result in a flow of profitable orders. 
Whilst the Group's strategic partnership with the Bureau of Geophysical 
Prospecting in China (BGP) has already yielded its first survey offshore 
Equatorial Guinea, which is now well under way, two other significant CSEM 
opportunities which we had been anticipating to convert into contracts by this 
stage have now been delayed until 2010 due to reasons beyond the Company's 
control.To increase our cash reserves to be able to accommodate these 
delays, the Company has put in place a credit facility  to provide funding  to 
its main CSEM trading subsidiary, OHM Ltd, to help it continue to take advantage 
of the continued flow of CSEM opportunities, several of which have already been 
identified as revenue generating projects, which we continue to see. 
 
 
The Credit Facility will provide the Company with access to short term financial 
support. 
 
 
Terms: 
 
 
1) The credit line facility of up to $2 million is to be provided equally by 
affiliates of East Hill and Seatrans (the "Lenders") to Offshore Hydrocarbon 
Mapping plc 
 
 
2) The interest rate is set at 5% above US prime (which is currently 3.25%) and 
is payable by OHM to the Lenders quarterly in arrears commencing on 31st March 
2010 and quarterly thereafter on 30th June, 30th September and 31 December. 
 
 
3) Security cover will be a joint Floating Charge in favour of the Lenders 
covering all of the assets of the Company and its main trading subsidiaries, OHM 
Ltd and Rock Solid Images Inc. 
 
 
4) The availability of the Facility will end on 30th June 2010 unless otherwise 
agreed in writing by both Lenders and the loan balance outstanding at 30th June 
2010 is to be repaid as soon as possible by OHM, but in any event in four 
instalments by 30 September 2011, unless otherwise agreed in writing by both 
Lenders. 
 
 
The Directors  having consulted with KBC Peel Hunt, the Company's Nominated 
Adviser, are satisfied that the terms of the transaction are fair and reasonable 
insofar as OHM shareholders are concerned. 
 
 
Richard Cooper, Offshore Hydrocarbon Mapping's Chief Executive Officer, said: 
 
 
"OHM is very pleased to have the continued support of its two largest 
shareholders. Backlog of seismic reservoir characterization projects within our 
Rock Solid Images subsidiary remains at a high level, and we continue to grow 
backlog in the CSEM processing division of OHM Ltd. However, the acceleration in 
growth of our marine CSEM business has been slower than anticipated and we are 
pleased to have this additional financial cushion available to help us develop 
this market." 
 
 
 
 
 
 
 
 
Contact: 
 
 
+-----------------------------------------------+---------------------------+ 
| Offshore Hydrocarbon Mapping plc              | www.ohmsurveys.com        | 
+-----------------------------------------------+---------------------------+ 
| Richard Cooper - Chief Executive Officer      | 0870 429 6581             | 
+-----------------------------------------------+---------------------------+ 
| Bob Auckland- Finance Director                | 0870 429 6581             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| KBC Peel Hunt (NOMAD and Broker)              |                           | 
+-----------------------------------------------+---------------------------+ 
| Julian Blunt/David Anderson                   | 020 7418 8900             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| Aquila Financial Ltd (PR)                     |                           | 
+-----------------------------------------------+---------------------------+ 
| Peter Reilly                                  | 0118 979 4100             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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