Pryme Energy Limited (ASX:PYM) Re-negotiation of Credit Facility.
The Term Facility has been amended as follows: Loan amount is capped at the currently drawn down amount of US$6,500,000. Interest payable on the Term Facility is reduced to 2.00% per annum payable monthly in arrears. The Maturity Date of the Term Facility is November 30, 2013. The Maturity Date can be extended through to February 28, 2014 by paying the borrowers' share of certain lease rentals which are due in mid-December 2013 and total US$281,000 to the 100% working interest. The Net Profits Interest (NPI) previously assigned to Macquarie Bank, equal to 25% of Pryme's Working Interest in Turner Bayou, is cancelled and will be restored to Pryme. The borrower will retain an acquisitions and divestitures specialist to assist in maximising project value through a farm out or sale or combination of both through to the Maturity Date.
These amendments will allow the company to pursue further drilling opportunities in Turner Bayou, whether targeting the Austin Chalk formation or the shallower Middle Wilcox, through to the Maturity Date.
We continue to review and investigate the acquisition of one or more strategic assets to augment the exploration upside in Turner Bayou and we hope to release further details on these projects as negotiations are finalised.
Our vision, to grow Pryme into a high quality independent US oil and gas company capable of delivering high returns to shareholders through the exploration and development of projects throughout the USA, remains unchanged.
About Pryme Energy Limited:
Pryme Energy Limited (ASX:PYM) (OTCQX:POGLY) is an Australian company exploring for oil and gas in the Gulf Coast states of the USA. Pryme currently has three oil and gas producing projects and substantial exploration acreage. The Company's immediate focus is the development of a major phase oil Austin Chalk formation exploration and production play, with Tuscaloosa Marine Shale potential, in its Turner Bayou project in Avoyelles Parish, Louisiana. Louisiana is the fifth largest oil and gas producing state in the US.
Pryme's board of directors and management team have over 100 years of energy industry experience with extensive local knowledge underscored by proven track records. Pryme applies advanced geological science to drive early stage exploration projects through to production.
Pryme's shares are publicly traded on the Australian Securities Exchange (ASX:PYM) or as American Depositary Receipts (ADRs) on the OTCQX in the United States of America.
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|Date:||Sep 19, 2013|
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