CALGARY, Dec. 28 /CNW/ - Blackpool Exploration Ltd. (the "Company" or
"Blackpool") (BPX.A - TSX Venture Exchange) announces that the Company has
entered agreements to borrow a total of $2,000,000.00 for the purpose of
paying out an existing bridge financing. The Company has borrowed
$1,800,000.00 from The K2 Principal Fund L.P. ("K2"), an Ontario limited
partnership and $100,000.00 from each of Ronald W. Shepherd and Garry T.
Tether who are directors of the Company. The loans bear interest at 12% per
annum and will be payable on or before June 22, 2006. As security for the loan
from K2, the Company has granted a debenture covering all assets of the
Company and of the Company's wholly owned subsidiary, C2 Energy Inc. The
debenture is subordinated to the security interest of Blackpool's principal
lender, ATB Financial, which has provided a $3,100,000.00 operating line of
credit. The loans from the directors are unsecured and the directors have
executed postponement agreements in favour of both ATB Financial and K2. In
consideration of the loan, the Company has issued to K2 a total of 400,000
free-trading common shares, subject to a four (4) month hold under applicable
securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
