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Petrolifera Petroleum Limited completes amendment to its reserve-backed credit facility and reduces indebtedness
Petrolifera Petroleum Limited completes amendment to its reserve-backed credit facility and reduc...
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[{"type":"text","content":"\n\n\n\n Aug. 4, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nCALGARY, Aug. 4 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that it has completed an amendment ("Amendment") to its reserve-backed credit facility, resulting in an extension of its term until June 30, 2012 and a reduction in borrowings under the facility to US$38.25 million, as a result of a one-time payment of US$8 million, made immediately prior to closing and the simultaneous payment of an additional US$3.75 million, representing the second quarter 2010 payment which under normal circumstances would have been paid prior to June 30, 2010 if, as was anticipated, the Amendment had been closed prior thereto.\nPetrolifera has agreed to make similar quarterly principal repayments of $US3.75 million, which are anticipated to be financed from its cash balances and cash flow from operations, at the end of each ensuing quarter until June 30, 2012, when the balance of US$12 million (or such lesser amount as may be outstanding) will become due and payable. Pursuant to the Amendment, a portion of any funds received by Petrolifera from the recovery of sunk costs (up to a maximum of US$5 million in the aggregate) pursuant to any farmout agreements which may be consummated with respect to the company's lands in Colombia and Peru will also be used to further reduce indebtedness. Pricing reflects current market conditions based on the London Interbank Rate ("LIBOR"). Pursuant to the Amendment, should alternative sources of funding become available to it, the company retains the right to discharge any balance of indebtedness of this amended reserve-backed credit facility, at any time and without penalty.\nThe Amendment provides Petrolifera with an immediate improvement in its working capital position, as a significant portion of the company's reserve-backed indebtedness will now be classified as long-term debt. This balance sheet effect will be ...