NiMin Energy Corp.

NiMin Energy Corp.

April 12, 2010 06:00 ET

NiMin Energy Signs Term Sheet for Long-Term Financing

CARPINTERIA, CALIFORNIA--(Marketwire - April 12, 2010) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today announced the execution of a preliminary term sheet for a senior secured loan (the "Loan") in the amount of US$36 million from a large institutional private lender (the "Lender"). At the request of the Company and subject to approval by the Lender, the Loan may be increased up to US$75 million to provide additional development capital.

The new long-term Loan will be used to repay the Company's existing short-term debt of US$22.4 million and to fund the 2010 capital program – which is focused on developing the recently acquired Wyoming assets. The Loan is for five years, carries a fixed interest rate of 12.5% per year and is expected to close by May 31, 2010, subject to customary due diligence, negotiation of final terms, conditions and other fees and costs, and approvals by Lender and the Company's Board of Directors.

Clancy Cottman, NiMin's Chairman and CEO, said, "This long-term financing is an important step for the Company as it both removes the short-term debt obligation from our balance sheet and provides us with the capital to execute our 2010 drilling program – including continued drilling in Wyoming and an additional well in California. It also provides NiMin with significant financing flexibility going forward to grow our business."

The Company recently announced the completion of its first well at the Ferguson Ranch Field in Wyoming and plans to drill an additional eleven low-risk development wells in the same field during 2010. NiMin is also planning an additional well on its California property as a result of the positive production response from the Pleito Creek "Combined Miscible Drive" operations. 

About NiMin Energy

NiMin Energy Corp., a Canadian company, is a California-based independent oil and gas exploitation and production company with principal operations in the U.S. in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and onshore areas of South Louisiana. Pursuant to the Company's report of estimated reserves at January 1, 2010, prepared in accordance with National Instrument 51-101, The Company has over 27 million barrels of oil equivalent proved and probable reserves -- 96% of which are oil in California and Wyoming.

Cautionary Statements

This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws, including the timing and completion of the Loan, the use of the Loan proceeds, the drilling and development program to be executed by NiMin in Wyoming and California. A boe equivalent ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation. Although NiMin believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based upon currently available information to NiMin. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in forward-looking statements. Risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release, and, except as required by applicable law, NiMin does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. NiMin undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the NiMin, Legacy or their respective financial or operating results or, as applicable, their securities.

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