FINANCING-TOP 20 LISTED / Carmanah Resources Ltd.
Completes Credit Facility, Updates Onado Developments
TSE SYMBOL: CKM
FEBRUARY 19, 1998
CALGARY, ALBERTA--Carmanah Resources Ltd. (CKM - TSE) has now
completed previously-announced arrangements for a $50 million
credit facility with Canadian Imperial Bank of Commerce. The
facility is comprised of senior and subordinated secured loans,
due on January 31, 2000. The loans may be prepaid without
penalty, may be drawn in either Canadian or US dollars and bear
floating rate coupons related to market conditions and the
denominated currency. The senior secured loan may be redrawn
during its term. In conjunction with establishing the facility,
Carmanah has issued the lender, by way of private placement, 1.1
million common shares from treasury. As a result, Carmanah now
has 36,087,079 common shares outstanding.
Proceeds will be utilized in conjunction with projected cash flow
from operations to fund a planned $84 million capital budget
during 1998 to develop the Camar and Langsa Fields offshore
Indonesia and the Onado Field onshore Venezuela. This program
will involve development drilling, tie-backs and facility
installation to realize the productive capacity of established
proven reserves in these three regions. Additionally, Carmanah
will be carried, at no cost to the Company, in up to $35 million
of exploration activity at Northeast Natuna during the year, all
funded by a third party.
Separately, in Venezuela, the consortium in which Carmanah holds a
26 percent working interest has received formal approval of its
Plan of Development ("POD") for the Onado Area, acquired in
mid-1997 during the Third Round of Awards by PDVSA, the state oil
company. Compania General de Combustibles S. A. ("CGC"), the
operator, took over operations this week and will be proceeding
immediately to implement activities pursuant to the POD. This
will initially involve reactivation and recompletion of existing
wells and the drilling of at least one new well, scheduled for
mid-1998. The CGC-led group is the second consortium to receive
formal plan approval and handover of operations of those which
were successful during the Third Round. |
