Result Energy Inc. Provides Financing Update

About this update from Route 109 Resources Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 14 /CNW/ - Result Energy Inc. ("Result"; TSX-V: RTE) is\npleased to announce the following financing activities:\n\n\nThe TSX Venture Exchange has approved amendments to the terms of existing\nconvertible debentures totalling $3,275,000 (the "Convertible Debenture\nFinancing") which were issued in September 2006. Under the terms of the\namended Convertible Debenture Financing, the debentures' maturity date has\nbeen extended by 4 months from February 28 to June 30, 2008, and effective\nfrom March 1, 2008 the convertible debentures will bear interest at 10% per\nannum and will be convertible at the option of the holder into Result common\nshares at $0.40 per common share (previously at prime +3% and $1.15 per share\nrespectively). The convertible debentures continue to be repayable in cash at\nResult's option, subject to the debenture holders' prior rights to convert.\nThe reduction in the conversion price to $0.40 will not create a new insider\nor control person.\n\n\nResult is in process of securing from its bankers a $2 million short-term\nsecured bank term loan facility. The facility will bear interest at prime\n+ 3%, matures April 30, 2008, and is in addition to the Company's existing\n$14 million bank revolving facility.\n\n\nHolders of convertible debentures totaling $1,275,000 have agreed to the\nabove noted amendments, and the $2 million bank term loan facility will be\nused to fund repayment of the remaining $2 million of convertible debentures\non February 28.\n\n\nResult is in process of selling the majority of its Saskatchewan natural\ngas properties, with an expected closing date of March 31, and intends to use\nthe proceeds from the sale to repay the remaining debentures and substantially\nall bank debt. Post closing of the sale, this restructuring should allow\nResult to exit Q1-08 with estimated production of 1,000 to 1,100 boe/d, be\nvirtually debt free, and have significant operating cash flow to apply to its\nremaining inventory of 2008 exploration projects.\n\n\nInvestors are cautioned that this news release contains forward-looking\ninformation. Such information is subject to known and unknown risks,\nuncertainties and other factors that could influence actual results or events\nand cause actual results or events to differ materially from those stated,\nanticipated o...

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