PARTNERS OIL COMPANY ENTERS AGREEMENT WITH ENDOWMENT ENERGY PARTNERS, L.P.
PARTNERS OIL COMPANY ENTERS AGREEMENT WITH ENDOWMENT ENERGY PARTNERS, L.P. OKLAHOMA CITY, Sept. 21 /PRNewswire/ -- Partners Oil Company (NASDAQ: PAROA) announced today that it had completed negotiations and entered into an amended Financing Agreement with Endowment Energy Partners, L.P. ("EEP"), its primary lender in the acquisition and development of oil and gas properties in Offshore Texas. The agreement, which became effective Sept. 14, 1992, provides for the company to obtain up to $1.2 million of additional financing to cover costs of drilling and completing a development well on its North Padre Island prospect. Drilling operations on North Padre Island, Block 967 are expected to commence in the near future. Also provided in the agreement, were reductions in the company's monthly debt payments to EEP by the restructuring of its loan payments, revisions to financial covenants to allow the company to be in compliance with the agreement, depletion of prepayment penalties, and various other amendments, all favorable to the company. As consideration, EEP was issued warrants, which expire on Dec. 31, 2000, to purchase 200,000 shares of Common Stock at an exercise price of $2.00 per share, subject to certain adjustments, rights and privileges. Partners Oil Company is a publicly owned Oklahoma City, Okla. based exploration and production company with primary operations in Offshore Texas, whose Common Stock is traded on NASDAQ. Inquiries should be directed to Michael J. McGrath at 405/848-6016. -0- 9/21/92 /CONTACT: Michael J. McGrath, executive vice president of Partners Oil Company, 405-8483-6016/ (PAROA) CO: Partners Oil Company; Endowment Energy Partners, L.P. ST: Oklahoma IN: OIL SU:
SH -- NY063 -- 1740 09/21/92 13:46 EDT
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|Date:||Sep 21, 1992|
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