Buccaneer Energy Project Finance Facility
Sydney, April 20, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise that it has executed a Term Sheet for a US$20.0 million project finance facility.
It is anticipated that the financing will proceed by way of a secured note issue by a subsidiary of the Company, Buccaneer Alaska, LLC, to be guaranteed by the Company and other subsidiaries. This type of funding allows for flexibility and limits dilution. It will also open the door to larger funding facilities down the road.
The prospective lender is currently performing due diligence and the Company, in conjunction with them, will move to finalize and execute definitive documentation.
The Company expects to finalise the negotiation and execution of definitive documentation in the next 14 - 28 days. The funds raised from the project finance facility will be used for the following purposes:
- Acquisition of the Glacier #1 Drilling Rig;
- Vendor payments;
- Transaction expenses; and
- General corporate & operational expenses.
The Company will update the market on progress as soon as it is in a position to do so.
Buccaneer Director Dean Gallegos said:
"Putting together a funding facility of this type is a significant milestone for Buccaneer Energy. We are pleased to be working with this Prospective Lender and we appreciate the cooperation of all our stakeholders while we work through the process. Buccaneer is firmly committed to its Alaska strategy and we are looking forward to progress on our Kenai Loop project including our next well at Kenai Loop and our first offshore well later this year."
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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