CALGARY and LONDON, Dec. 21 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce that the Company, through its wholly owned subsidiary, Solana Petroleum Exploration (Colombia) Limited, has secured a USD$100 million senior first lien three year revolving secured credit facility with BNP Paribas Bank. The initial amount available for drawdown under the facility is USD$26 million and amounts drawn down bear an interest rate that varies with the Company's net production ranging from 2.375% to 3.125% over LIBOR. The facility is secured against the Company's Colombian oil and gas reserves and the amount available for drawdown will be adjusted pursuant to semi-annual reserve reports. Proceeds from the credit facility will be used to fund the Company's ongoing exploration and development projects. The Company has no immediate plans to draw on the facility following the CDN$60 million gross financing the Company closed on November 26, 2007.
Forward Looking Statements
Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, mechanical problems, equipment limitations, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated.
Solana Resources Limited
Solana (www.solanaresources.com) is an international resource company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company's properties are located in Colombia, South America and are held through its wholly owned subsidiary, Solana Petroleum Exploration (Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.
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