Oil and gas exploration firm Circle Oil said it has signed a loan agreement of up to $100 million that will allow it to invest in new exploration and development.

The company, which concentrates on the Middle East and Africa, signed the facility with IFC, a member of the World Bank Group, against its producing assets in Egypt and Morocco. The debt facility matures in June 2018.

Aside from funding new exploration and development in both its core markets and elsewhere, the debt facility will also be used to repay the existing working capital facility of $12.5 million agreed with Ahli United Bank Egypt in December 2012.

Circle oil chief executive Prof Chris Green said the company was pleased to sign the loan agreement,which demonstrated the quality of its producing assets in both Egypt and Morocco.