Southern Star gets $25 million; Advanced Explorations sees C$7.5 million; Pure Energy prices C$6 million

By Devika Patel

Knoxville, Tenn., July 17 - Southern Star Energy Inc. negotiated a $25 million revolving credit facility with Macquarie Bank Ltd. and plans to use the proceeds to fund its oil and gas projects, Advanced Explorations Inc. plans to sell C$7.5 million of its flow-through shares and units, raising funds for further development of the company's Nunavut Roche Bay Magnetite Project and Pure Energy Visions Corp. arranged a C$6 million private placement of units through lead agent Blackmont Capital Inc.

Southern Star wraps $25 million

Southern Star settled a $25 million three-year senior first lien secured revolving credit arrangement with Macquarie Bank.

The initial borrowing base is $5 million. At closing, the company will draw $2.5 million, leaving $2.5 million available for future tranches.

The facility will carry an interest rate of Prime plus 200 basis points, which will be calculated and payable monthly.

In addition, Macquarie Americas Corp., an affiliate of Macquarie Bank, will receive a five-year warrant for 5% of Southern Star's diluted common share count, exercisable at $1.00

Proceeds will be used to fund the development of Southern Star's Sentell Field as well as other oil and natural gas interests.

The Houston-based company disclosed in a June 30 press release that it is actively evaluating the potential for drilling and producing natural gas from the Haynesville Shale, an emerging natural gas play in its Sentell Field.

"With the establishment of a proved and probable asset base, and a rising production profile, this revolver provides Southern Star with the appropriate structure and amount of capital to fuel our growth for our shareholders," Southern Star's president and chief executive officer David Gibbs said of the facility in a press release on Thursday. "The Macquarie Bank financing will be used for our upcoming 10-well drilling program.

"Near-term, we have a rig commitment from Nabors Drilling for our 10-well drilling program to develop our Cotton Valley reserves. Beginning in September, we will drill vertical Haynesville shale delineation wells on our acreage to test their potential. Recent competitor-announced leasehold transactions and drilling results into the Haynesville offer excellent signposts for Southern Star's future," Gibbs concluded in the release.

The oil and gas resource company's shares (OTCBB: SSEY) fell 1.82%, or $0.02, remained unchanged Thursday, closing at $1.10.

Advanced Explorations: C$7.5 million

Advanced Explorations said it will sell a combination of flow-through shares and units to raise C$7.5 million in a private placement.

The company will sell up to 3.5 million flow-through common shares at C$1.50 apiece for up to C$5.25 million and up to 5 million units at C$1.35 per unit for up to C$6.75 million.

The company will adjust the amounts of units and shares so that it doesn't exceed its planned total.

Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$2.00 for two years.

Proceeds will be used for further development of the company's Nunavut Roche Bay Magnetite Project and unallocated working capital.

In a July 14 press release, Advanced Explorations' president and chief executive officer John Gingerich spoke of the company's plans to earn up to a 70% interest in the Roche Bay project.

"The ability of AEI to acquire a substantial majority of the Roche Bay project is a significant step forward for the AEI shareholders," Gingerich said in that release. "The simpler clear majority structure will impact our ongoing negotiations with members of the mining and steel communities.

"The resource and economic studies are in the pipeline and we expect to be in a position to announce the results of these studies later this summer," Gingerich continued.

The Toronto-based petroleum and mineral exploration company's shares (TSX Venture: AXI) dropped 0.76 %, or $0.01, to close at C$1.30 on Thursday.

Pure Energy plans C$6 million

Pure Energy Visions priced a C$6 million private placement of units on Thursday, which originally was announced as a non-brokered offering on July 2.

The Toronto-based company hopes to sell up to 10,909,090 units of one common share and a half-share warrant at C$0.55 apiece. The whole warrants will be exercisable at C$0.75 for 18 months.

The deal will be conducted by a syndicate of agents led by Blackmont Capital Inc. and including Canaccord Capital Corp., Raymond James Corp. and Research Capital Corp.

The agents have a greenshoe for an additional C$900,000, or 1,636,363 units.

The company hopes the placement will settle by July 30.

Proceeds will be used for general corporate purposes.

Pure Energy is an international consumer and commercial products company focusing on cost effective, environmentally responsible products. The corporation is a supplier of rechargeable alkaline batteries products.

Its shares (TSX Venture: PEV) decreased 4.92% on Wednesday, or C$0.03, to close at C$0.58.

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