Business
Petrolifera Completes Credit Facility with Standard Bank PLC
Petrolifera Completes Credit Facility with Standard Bank PLC.
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Sept. 5 /CNW/ - Petrolifera Petroleum Limited ("Petrolifera" or\nthe "Company") announced today that the Company has established and closed a\nthree-year US$100 million revolving credit facility, to be provided by\nStandard Bank PLC ("Bank"). This reserve based facility will have an initial\navailability and total commitment of US$60 million and will bear interest at\nLIBOR plus 3.75%. The facility provides the Company with access to additional\ncapital, if and when required, as well as increased financial flexibility. The\nBank reserves the right to syndicate the facility.\n\n\nThe level of committed initial availability is based on the Company's oil\nand natural gas reserves, as assessed by GLJ Petroleum Consultants, the\nCompany's independent petroleum engineer, as at December 31, 2006 and as\nadjusted by the Bank to incorporate cumulative production in the current year.\nThe remainder of US$40 million may be available, within the established term,\nif the Bank determines from time to time that the oil and natural gas reserves\nof the Company support additional lending amounts and the total commitment\nunder the facility is increased. Among other conditions, the amount available\nunder the facility is subject to a semi-annual review, with the next review to\nbe based on the Company's 2007 year-end reserve report scheduled for\ncompletion in late February or early March 2008.\n\n\nThe Company does not presently expect to draw on this facility before\nyear-end, but may be required to access funds if the current asset backed\ncommercial paper situation in Canada is not resolved in a timely manner.\nPetrolifera advised that a total of $37.7 million is presently overdue and\nowed to the Company by Apsley Trust and MMAI-I Trust. Petrolifera continues in\nits efforts to recover these funds in a timely manner. The Company also\ncontinues to monitor the situation closely and will provide updates when and\nif appropriate.\n\n\nPetrolifera is currently of the opinion that it has the production,\nsales, cash flow and cash balances in other bank accounts in Argentina and\nBarbados to carry out its budgeted programs for the next several months,\nwithout accessing this new facility.\n\n\nPetrolifera Petroleum Limited is a Calgary-based crude oil and natural\ngas exploration, development and pro...