Big Sky Energy Corporation Signs Convertible Debenture to Finance Its 2005 Drilling Program.CALGARY, Alberta -- Big Sky Energy Corporation, (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BSKO) (the "Company") announced today that it has signed a convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. to secure a US$17.5 million facility from Sun Drilling LLP LLP - Lower Layer Protocol ("Sun Drilling") to finance the 2005 drilling program of its two subsidiaries, KoZhaN LLP and Vector Energy West LLP. KoZhaN LLP plans to drill two wells in its Morskoe field, and Vector Energy West LLP plans to drill ten wells in its Atyrau block in 2005, commencing approximately in May and July respectively. Sun Drilling has agreed to provide full well construction services for these wells on a turnkey basis, specified under a formal drilling contract, finalized on May 5th. The Company will pay 20% of Sun Drilling's pre-agreed well construction cost in cash as each well is completed and the 80% balance within one year, secured by a convertible debenture. This debenture will carry an interest charge of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 4% per annum Per annum Yearly. . Sun Drilling will have the right to convert to the Company's common shares after 365 days from issue of each invoice, with the conversion price not to exceed two dollars per share. "We are very pleased to have Sun Drilling, a pre-eminent drilling contractor, join us as a stake-holder in our 2005 drilling plans," stated Mr. Al Sehsuvaroglu, President of the Company. "We believe this relationship will provide for a timely and cost effective execution of what is a rather entailed drilling program. As well, we believe the staged nature of this convertible debenture is an innovative and accretive solution to alternative forms of financing at this stage of evolution of our company." Big Sky Energy Corporation is an international oil and gas exploration company, looking to develop assets in the world's most prolific basins in order to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Kazakhstan's renowned pre-Caspian basin. Note: The information contained in this press release contains forward looking statements which are based on the current expectations of the management of Big Sky Energy Corporation only, and actual results may differ materially. For a more detailed discussion of risks and other factors related to Big Sky Energy Corporation, please refer to its 10-KSB and 10 QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound reports filed with the U.S. Securities and Exchange Commission. Big Sky Energy Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :BSKO) |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion