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GARNET ANNOUNCES COMMITMENT FOR NEW FINANCING

 HOUSTON, Aug. 23 /PRNewswire/ -- Garnet Resources Corporation (NASDAQ: GARN) announced that it has received a commitment for a loan guaranty of $9.2 million to be used for development activities on its Santana block in the Putumayo region of Colombia.
 The company reported that Overseas Private Investment Corporation ("OPIC"), an agency of the United States government, has committed to guarantee up to $9.2 million in loans to Argosy Energy International ("Argosy"), the company's subsidiary through which its Colombian operations are conducted. The loans will be used to drill development wells in the Toroyaco, Linda, Mary and Miraflor fields, and to construct the pipelines and production facilities necessary to initiate production from the Mary and Miraflor fields in 1994. The company stated that it expects that Argosy's share of the costs of these activities will be fully funded from the loans and from cash flow currently being received from its existing production in Colombia.
 The loans will be disbursed in two stages, with the first disbursement anticipated in the fourth quarter of this year and the second disbursement occurring in the second or third quarter of 1994. The maximum term of the loans is not to exceed seven years, and the principal amortization schedule will be based on projected cash flows from the four oilfields to maintain compliance with the financial covenants required by OPIC's guaranty. OPIC's guaranty will be secured by Argosy's interest in the Santana block and related assets.
 The loan disbursements are subject to the completion of applicable documentation and customary consents and approvals, as well as compliance with certain drilling and production schedules and oil sales requirements.
 Garnet is engaged primarily in international oil and gas exploration activities.
 OPIC's mission is to encourage American businesses to invest in developing and emerging markets, thereby strengthening the U.S. economy by generating exports and jobs and enhancing the competitiveness of U.S. businesses.
 -0- 8/23/93
 /CONTACT: Albert E. Whitehead, chairman, 918-587-8093 or George M. Nevers, president, 713-759-1692, both of Garnet Resources Corporation/
 (GARN)


CO: Garnet Resources Corporation ST: Texas IN: OIL SU: FNC

PS-MG -- NY041 -- 5092 08/23/93 13:58 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
Words:356
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