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Storm Cat Energy Corporation Secures Revolving Line of Credit
Storm Cat Energy Corporation Secures Revolving Line of Credit.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Canada and DENVER, Aug. 1 /CNW/ -- Storm Cat\nEnergy Corporation (Amex: SCU; TSX: SME) today announced that it has closed a\nrevolving line of credit facility led by JPMorgan Chase Bank, N.A. providing\nfor a credit line of up to US$250 million. Loans made under the revolving\ncredit agreement are secured by mortgages on the Company's oil & gas\nproperties and guaranteed by Storm Cat's Powder River Basin assets.\nEach loan bears interest at a Eurodollar rate or a base rate, as requested\nby Storm Cat, plus an applicable percentage based on Storm Cat's usage of the\nfacility. In addition, under the terms of the US$250 million credit\nagreement, Storm Cat will pay a commitment fee quarterly in arrears based on a\npercentage multiplied by the daily amount that the aggregate commitments\nexceed borrowings under the agreement. Storm Cat did not borrow any funds at\nthe time of execution of the credit agreement.\nThe credit facility is available to provide funds for the exploration,\ndevelopment and/or acquisition of oil and gas properties and for working\ncapital and other general corporate purposes. Interest on funds drawn will be\npaid monthly with the principal due August 2010. The agreement provides for\nsemi-annual evaluation of the borrowing base, which will be determined as a\npercentage of the discounted present value of the Company's oil and natural\ngas reserves.\n\"This revolving line of credit is an important financial instrument that\nwe can use to further our growth,\" said Scott Zimmerman, Storm Cat's Chief\nPresident and CEO. \"While there are numerous competent choices in energy\nlenders, we believe that by establishing our relationship with JPMorgan Chase\nBank, N.A., we can leverage both their expertise and financial strength. With\nthis credit facility, which is tied to our reserve base, we are further\ncapable of funding our drilling and completion plans in our core operating\nareas of the US and Canada.\"\n\nAbout Storm Cat Energy Corporation\nStorm Cat Energy is an independent oil and gas company focused on the\npursuit, exploration and development of large unconventional gas reserves from\nfractured shales, coal beds and tight sand formations. The Company has\nproducing properties in Wyoming's Powder River Basin, exploitation and\ndevelopment acreage in Canada, Arkansas and Alaska. The C...