Five-year equity credit agreement arranged on "competitive terms"
By Devika Patel
Knoxville, Tenn., Oct. 13 - Drillsearch Energy Ltd. said it has secured an equity credit facility with YA Global Master SPV Ltd.
The A$15 million financing will be for a five-year term. Under its terms, the company will sell shares in tranches of up to A$300,000 at a price equal to 100% of the lowest volume-weighted average price of the shares traded on each of the 10 trading days following an advance notice.
"Drillsearch is extremely pleased to have worked with Yorkville to have established this facility," managing director Brad Lingo said in a press release.
"We do not have any plans to utilize the facility in the near term, but it does provide the company with a high degree of funding flexibility on very competitive terms.
"As we move to accelerate the development of our substantial Wet Gas discoveries in the Western Cooper Basin, having access to this facility can complement other field development funding options such as commercial bank financing," Lingo continued.
"This should allow us to minimize dilution to shareholders while delivering a very important growth project for the company. Along with Beach Energy, we have recently declared the Middleton, Brownlow, Udacha and Canunda Wet Gas Discoveries commercial and pending development and are very much working towards these ends in the near term.
"The facility provides an overall security of funding and flexibility to support the delivery of this and other field development and production projects over the next five years that will deliver significant cash flows from the very liquids rich gas streams.
In the past, these facilities were used very well by Queensland Gas to accelerate their development of the substantial CSG resources they established in Southeast Queensland and we see the opportunity to use the support of this facility to accelerate the development of the Western Cooper Gas and Liquids Project," Lingo concluded.
The oil and gas exploration, development and production company is based in Sydney, Australia.
| Issuer: | Drillsearch Energy Ltd.
|
| Issue: | Equity credit facility
|
| Amount: | A$15 million
|
| Tenor: | Five years
|
| Price: | 100% of lowest volume-weighted average price
|
| Warrants: | No
|
| Investor: | YA Global Master SPV Ltd
|
| Settlement date: | Oct. 13
|
| Stock symbol: | Australia: DLS
|
| Stock price: | A$0.064 at close Oct. 13
|
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