Re-negotiation of Credit Facility
Brisbane, Sep 19, 2013 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) (POGLY:OTCMKTS) announce that the drilling of the Rosewood Plantation 21H well in the Turner Bayou project was funded by way of a non-recourse credit facility (Term Facility) provided by Macquarie Bank Limited. The loan security is limited to the Turner Bayou project assets and the company's other assets, including cash holdings, are excluded.
The Term Facility has been amended as follows: Loan amount is capped at the currently drawn down amount of US$6,500,000. Interest payable on the Term Facility is reduced to 2.00% per annum payable monthly in arrears. The Maturity Date of the Term Facility is November 30, 2013. The Maturity Date can be extended through to February 28, 2014 by paying the borrowers' share of certain lease rentals which are due in mid-December 2013 and total US$281,000 to the 100% working interest. The Net Profits Interest (NPI) previously assigned to Macquarie Bank, equal to 25% of Pryme's Working Interest in Turner Bayou, is cancelled and will be restored to Pryme. The borrower will retain an acquisitions and divestitures specialist to assist in maximising project value through a farm out or sale or combination of both through to the Maturity Date.
These amendments will allow the company to pursue further drilling opportunities in Turner Bayou, whether targeting the Austin Chalk formation or the shallower Middle Wilcox, through to the Maturity Date.
We continue to review and investigate the acquisition of one or more strategic assets to augment the exploration upside in Turner Bayou and we hope to release further details on these projects as negotiations are finalised.
Our vision, to grow Pryme into a high quality independent US oil and gas company capable of delivering high returns to shareholders through the exploration and development of projects throughout the USA, remains unchanged.
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).
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