Southern Star Energy, Closes First Phase of Financing
Monday June 2, 9:00 am ET
HOUSTON--(BUSINESS WIRE)--Southern Star Energy, Inc., (OTCBB: SSEY - News), is pleased to announced on May 16, 2008, the Company entered into the first phase of a credit agreement with Macquarie Bank Limited, an Australian bank, www.macquarie.com. This initial phase provides for a loan facility that makes available to the company a secured term loan not to exceed $2,000,000. Proceeds from this facility will be used to complete work on the initial five-well pilot program in the company’s Sentell Field Development Project in Bossier Parish, La.
As previously reported, the Company’s pilot program has resulted in 100% success. Four of the five wells drilled to the Cotton Valley Formation are flowing to sales. Final completion and hook-up activities are in progress on the fifth well and are expected to be finished within the next week. The loan facility has replenished the Company’s working capital, for use in planning additional development in Bossier Parish, La., as well as business development activities in other producing regions.
The Company expects to close a larger development financing facility by the end of June. When funded, the planned facility will allow Southern Star to launch its full-scale development program in Sentell Field later in the third quarter as well as initiate activities on other projects currently under consideration.
Further Information:
Shareholders and prospective investors are encouraged to visit Southern Star Energy’s website: www.ssenergyinc.com to learn more about the Company and the Cotton Valley Trend. Please feel free to call investor relations at 1-800-733-2447, Ext. 107, to receive a full corporate investor package.
These developments are within the bounds of the Haynesville shale gas play. |
