Shareholders agree to sub Offshore Hydro
Dec 24, 2009
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Cash strapped oil services company Offshore Hydrocarbon Mapping (OHM) said affiliates of two of its largest shareholders have agreed to provide it with a credit facility of up to $2m.
Affiliates of East Hill Hedge Fund and Euro Trans Skips agreed to make the credit available after two significant controlled source electromagnetic (CSEM) contracts which the company had been hoping to win in the final quarter of 2009 failed to materialise.
OHM said these contracts have been delayed until 2010 due to reasons beyond its control.
The company continues to see other CSEM opportunities.
'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,' said Richard Cooper, chief executive officer of OHM.
The interest rate on the credit facilities will be 5% above US prime (currently at 3.25%).
The facility will be available until 30 June 2010.
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