Carmanah Completes Credit Facility, Updates Onado Developments.CALGARY, Alberta--(BUSINESS WIRE)--Feb. 19, 1998--Carmanah (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CKM CKM Cabibbo-Kobayashi-Maskawa (quark mixing matrix) CKM Certified Knowledge Manager (trademark of Hudson Associates Consulting, Inc. .) Carmanah Resources Ltd. (CKM - TSE) has now completed previously-announced arrangements for a $50 million credit facility with Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). . The facility is comprised of senior and subordinated secured loans, due on January 31, 2000. The loans may be prepaid without penalty, may be drawn in either Canadian or US dollars and bear floating rate coupons related to market conditions and the denominated currency. The senior secured loan may be redrawn during its term. In conjunction with establishing the facility, Carmanah has issued the lender, by way of private placement, 1.1 million common shares from treasury. As a result, Carmanah now has 36,087,079 common shares outstanding. Proceeds will be utilized in conjunction with projected cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses to fund a planned $84 million capital budget during 1998 to develop the Camar and Langsa Fields offshore Indonesia and the Onado Field onshore Venezuela. This program will involve development drilling, tie-backs and facility installation to realize the productive capacity of established proven reserves in these three regions. Additionally, Carmanah will be carried, at no cost to the Company, in up to $35 million of exploration activity at Northeast Natuna during the year, all funded by a third party. Separately, in Venezuela, the consortium in which Carmanah holds a 26 percent working interest has received formal approval of its Plan of Development ("POD") for the Onado Area, acquired in mid-1997 during the Third Round of Awards by PDVSA PDVSA Petroleos De Venezuela, SA , the state oil company. Compania General de Combustibles S. A. ("CGC CGC Canine Good Citizen (AKC Dog Title) CGC Commission Géologique du Canada (Geological Survey of Canada) CGC Confédération Générale des Cadres (French labor union) "), the operator, took over operations this week and will be proceeding immediately to implement activities pursuant to the POD. This will initially involve reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation and recompletion of existing wells and the drilling of at least one new well, scheduled for mid-1998. The CGC-led group is the second consortium to receive formal plan approval and handover of operations of those which were successful during the Third Round. -0- Note to Editors: The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has neither approved nor disapproved the contents hereof. CONTACT: Carmanah Resources Ltd. Mr. R.A. Gusella, 403/266-4975 403/266-5042 (FAX) carmanah@cadvision.com or Carmanah Resources Ltd. Mr. A.F. Badwi, 403/266-4975 403/266-5042 (FAX) |
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