International PetroReal Oil obtains $100 million loan commitment at Prime plus 550 bps

New York, Dec. 3 - International PetroReal Oil Corp. said it obtained a $100 million loan commitment from Macquarie Bank Ltd.

The loan will be in four tranches.

Tranche A of up to $50 million will be used to help fund International PetroReal's acquisition of an interest in the Main Pass-59 oil field in the Gulf of Mexico, scheduled to close on Jan. 7.

Tranche B of up to $7.5 million will be used to fund the company's share of investment in production equipment and pipelines for Main Pass-59.

A further $8 million will be available in tranche C to fund investment in the company's other oil and gas properties.

The fourth piece, tranche D, is up to $34.5 million and available for a possible second development phase of Main Pass-59. Availability of this portion is subject to a review of a development plan in late 2005 by the bank.

The facility has a five-year term, a $1.1 million commitment fee payable at closing and an interest rate of Prime plus 550 basis points.

At maturity, Macquarie will receive a net profit interest of 25% until it has received $20 million and 10% after that.

International PetroReal, a Vancouver, B.C., energy company, will also pay an advisory fee of $1.2 million payable to Intermarket Management LLC.

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