Printer Friendly

SABA PETROLEUM CO. ANNOUNCES $25,000,000 MASTER LOAN AGREEMENT

 IRVINE, Calif., Sept. 22 /PRNewswire/ -- Saba Petroleum Co. (AMEX: SAP.EC) announced today that it consummated a $25,000,000 Master Loan Agreement with Bank One - Houston, Texas, NA. The initial authorized borrowing base was established as a $7,500,000 reducing revolving credit line. Borrowing will be used to refinance $1,500,000 of current and $4,000,000 of long-term debt and production notes, as well as finance additional producing oil and gas property acquisitions. Funds drawn under the Loan Agreement are secured by Saba's existing oil and gas producing properties and will bear interest at prime plus 1 percent. The credit line will revolve through May 1995, at which time it will be converted to a three-year term loan. Saba President William Wineland observed that, "This credit facility will allow Saba to continue acquiring significant producing oil and gas properties and will further increase its rate of growth into 1994."
 In anticipation of the successful negotiation of the Bank One loan agreement, the company has entered into agreements to acquire several oil and gas producing properties. Based upon the timely closing of these acquisitions, Saba's oil and gas production is projected to be 3,500 barrels of oil equivalent per day on Dec. 31, 1993, up from the average of 1,853 barrels of oil equivalent per day for the first half of 1993.
 Saba recently announced record earnings for the six months ended June 30, 1993, recording the following increases as compared to the same period in 1992: oil and gas sales 295 percent, net earnings 84 percent, and production 242 percent. Saba, with corporate headquarters in Irvine, and field offices in Midland, Texas, and Ojai, Calif., has producing properties in California, Michigan, New Mexico, Oklahoma, Texas and Wyoming.
 -0- 9/22/93
 /CONTACT: William J. Hickey, Saba Petroleum, 714-724-1112/
 (SAP)


CO: Saba Petroleum Co. ST: California IN: OIL SU:

MF-JB -- LA002 -- 4554 09/22/93 09:31 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 22, 1993
Words:323
Previous Article:CIMCO INC. ANNOUNCES AGREEMENT WITH AST RESEARCH
Next Article:AUDIOSCIENCE, INC. RECEIVES U.S. DESIGN PATENT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters