Closes US$100m Non-Recourse Debt Facility
Brisbane, Dec 13, 2012 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) is pleased to announce that its wholly-owned subsidiary Pryme Oil and Gas LLC has executed a $100,000,000 Senior Secured Term Credit Agreement (Term Facility) with Macquarie Bank Limited (Macquarie Bank) to fund its share of exploration and development costs for the Turner Bayou project in Avoyelles Parish Louisiana, USA.
The Term Facility is secured only against the assets of Pryme Oil and Gas LLC, which holds Pryme's interest in the Turner Bayou project, and is non-recourse to the parent company and all other projects and subsidiaries of Pryme. The Term Facility repays and replaces the $5 million Bridge Loan Facility which was provided by Macquarie Bank in relation to the Rosewood Plantation 21H No.1 well in the Turner Bayou Chalk Project. The key terms and conditions of the Term Facility are set out below.
"We are very pleased to have closed on the one hundred million dollar term loan facility with Macquarie Bank. We can now continue to focus on unlocking the significant value of the Turner Bayou project including completing the Rosewood Plantation 21H No.1 well which is currently underway," said Justin Pettett, Pryme's Managing Director. "The strength and security of our funding arrangement with Macquarie means that existing shareholders and new investors can be confident that Pryme is well funded to move forward on the opportunities ahead of us at Turner Bayou. The funding arrangement sets Pryme apart from its peers and enables it to concentrate on building value for shareholders."
About Turner Bayou
The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Pryme has a 40% working interest in 25,029 acres (10,011 net acres) in the Turner Bayou project and is initially targeting development of the Austin Chalk horizon. In addition to the Austin Chalk potential of the Turner Bayou project area, exploration drilling within Pryme's Turner Bayou leases has intersected the Tuscaloosa Marine Shale which is analogous to the prolific Eagle Ford Shale in South Texas.
About Indago Energy Ltd
Indago Energy Ltd (ASX:INK) (OTCMKTS:POGLY) is an Australian listed company engaged in oil and gas exploration, development and production. Indago's project portfolio includes liquid rich producing assets together with substantial oil development and exploration acreage in the United States.
The Company's Exploration and Production focus is on high growth oil and gas projects offering scalability of production, cash flows and reserves. Indago currently has several producing projects together with a significant acreage position. The Company's immediate focus is the development of its Capitola Oil Project located in an active region of the Cline Shale resource play along the Eastern Shelf of the Permian Basin, Texas. The project's core development and exploitation opportunities are shallower multiple "stacked" sandstones and limestones to depths of 7,000 feet which are effectively produced from vertically drilled wells. Indago's value driven model is executed through exploiting shallower, well defined intervals with advanced completion and stimulation technology within known produced oil fields together with exposure to the emerging Cline Shale resource play.
Indago's shares are publicly traded on the Australian Securities Exchange (ASX ticker: INK) and also as American Depositary Receipts on the OTCQX (ADR ticker: POGLY).
| ||
|
