Marion Energy Limited (ASX:MAE) Bankers Approve Extension Of Bank Credit Facility Until March 31, 2011
The loan document will contain certain repayment provisions, and financial and operational covenants. The repayments schedule will include a requirement for a reduction of the amount outstanding from US$42 million to US$37 million by June 30, 2010, a further reduction to US$32 million by September 30, 2010 and the remaining balance outstanding repayable by the maturity date of March 31, 2011. The current interest margin and fees remain unchanged and a US$500,000 loan extension fee will be payable.
The extension of the maturity date of the credit facility in combination with the announced intention of undertaking a rights issue in the March 2010 quarter will considerably strengthen the Company's balance sheet. This, together with the recently instituted operations program, will strengthen the foundation for the Company's future development at it pursues the generation of production, revenue and cash flow from its substantial reserve base.
About Marion Energy Limited
Marion Energy Limited is following a low risk strategy of pursuing gas reserves and associated production in the Rocky Mountains and Mid-Continent regions. The Company's activities are generally within the geographic confines of or adjacent to known production and within easy access of existing pipeline infrastructure. We have been able to accumulate an enviable lease position where the company is undertaking a highly successful development drilling program.
Marion Energy Limited