American Resources of Delaware finalizes its $20 million revolving credit facility with Den norske Bank.Resources of Delaware Inc. ("the company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GASS GASS Greenland Air Surveillance System GASS Gas Analyzing Sensor System GASS Guidance Accuracy Study for SPRINT GASS Google AdSense Stats Syndrome GASS Generic Application Simulation System (Boeing Rotocraft) ) announced the closing of its $20 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with Den norske Bank Den norske Bank or DnB was a Norwegian bank that existed between 1990 and 2003 when it merged with Gjensidige NOR to form the present DnB NOR. The bank's headquarters were in Bergen, Norway. on Sept. 28, 1995. The company's initial borrowing base was established at $12.5 million and is subject to semi-annual review. The facility bears interest at prime plus 1 percent and is secured by a lien on the company's oil and gas properties, related inventories and accounts receivable, and an assignment of a note receivable. Initial borrowings from the facility were used primarily to (i) repay the company's prior credit facility with Bank One, Texas, which smaller facility carried interest at the rate of prime plus 2 percent, (ii) purchase a 50 percent interest in a production platform located in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east on Ship Shoal Block 150; and (iii) partially fund the company's 50 percent participation in the recent successful drilling of the B-4 well on Ship Shoal Block 150. Chief Financial Officer Rick Avare commented that "we are extremely pleased with the consummation of this financing arrangement and the commitment of Den norske to move forward with us as we continue our aggressive development plans." CONTACT: American Resources of Delaware Inc. Investor Relations, 602/945-9195 |
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