Major OUCH!!!!
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2007-09-06 02:10 ET - News Release
Mr. Richard Gusella reports
PETROLIFERA COMPLETES CREDIT FACILITY WITH STANDARD BANK PLC
Petrolifera Petroleum Ltd. has established and closed a three-year $100-million (U.S.) revolving credit facility, to be provided by Standard Bank PLC. This reserve-based facility will have an initial availability and total commitment of $60-million (U.S.) and will bear interest at LIBOR plus 3.75 per cent. The facility provides the company with access to additional capital, if and when required, as well as increased financial flexibility. The bank reserves the right to syndicate the facility.
The level of committed initial availability is based on the company's oil and natural gas reserves, as assessed by GLJ Petroleum Consultants, the company's independent petroleum engineer, as at Dec. 31, 2006, and as adjusted by the bank to incorporate cumulative production in the current year. The remainder of $40-million (U.S.) may be available, within the established term, if the bank determines from time to time that the oil and natural gas reserves of the company support additional lending amounts and the total commitment under the facility is increased. Among other conditions, the amount available under the facility is subject to a semi-annual review, with the next review to be based on the company's 2007 year-end reserve report scheduled for completion in late February or early March, 2008.
The company does not presently expect to draw on this facility before year-end, but may be required to access funds if the current asset-backed commercial paper situation in Canada is not resolved in a timely manner. Petrolifera advised that a total of $37.7-million is presently overdue and owed to the company by Apsley Trust and MMAI-I Trust. Petrolifera continues in its efforts to recover these funds in a timely manner. The company also continues to monitor the situation closely and will provide updates when and if appropriate.
Petrolifera is currently of the opinion that it has the production, sales, cash flow and cash balances in other bank accounts in Argentina and Barbados to carry out its budgeted programs for the next several months, without accessing this new facility.
We seek Safe Harbor. |
