Unbridled Energy Corporation

Unbridled Energy Corporation

October 23, 2007 09:18 ET

Unbridled Energy Corporation Negotiates $6 Million Credit Facility With Huntington National Bank

CALGARY, ALBERTA and PITTSBURGH, PENNSYLVANIA--(Marketwire - Oct. 23, 2007) - Unbridled Energy Corporation (TSX VENTURE:UNE)(FRANKFURT:O4U) (the "Company" or "Unbridled") is pleased to announce it has signed a commitment letter with Huntington National Bank, a U.S. bank headquartered in Columbus, Ohio, for a revolving line of credit of up to six million dollars ($6,000,000 US) for a term of two years. Interest will be charged on the outstanding principal at a rate of LIBOR (currently 5.04%) plus 250 basis points (or 2.5%). In addition, the Company will pay Huntington a one-time loan fee, at closing, of 1/2 of 1.0% of the maximum facility limit. The effective limit on total advances will be based on Unbridled's proven reserves, and will increase as the Company's reserves grow. The initial advance limit is $4.2 million (US) and will be applied to the development of the Company's existing reserve base and acquisitions currently under negotiation.

The proposed credit facility will be secured by a deed of trust covering the Company's oil and gas properties and an assignment of all contracts, permits, licenses, rents and leases associated with those assets.

Advances under the proposed facility are subject to various conditions, including Huntington completing its due diligence, the settlement of definitive loan and security documentation, Unbridled Board of Director approval and the acceptance of the TSX Venture Exchange.

"We look forward to further developing a beneficial relationship with Huntington Bank," stated Joe Frantz, President and CEO of Unbridled Energy. "Under these acceptable terms, this facility allows Unbridled to minimize shareholder dilution, reduce cost of capital and allow management to grow the Company, measured by value per share."

Unbridled Energy

Unbridled Energy is an independent natural gas evaluation and production company specializing in shale gas and tight gas sands ("TGS") opportunities in two main basins within North America; the eastern US Appalachian Basin and the Western Canadian Sedimentary Basin. The Company is applying a lower risk production enhancement strategy on existing wells, and the latest horizontal drilling and fracing technologies on new wells in well known shale gas and TGS formations in the Appalachian Basin. Importantly, management is also employing a "first mover" approach to large scale shale gas and TGS resource opportunities in the 580,000 square mile Western Canadian Sedimentary Basin. The Company has offices in Pittsburgh, Pennsylvania and Calgary, Alberta.

By Order of the Board of Directors

Unbridled Energy Corporation

Joseph H. Frantz Jr., President & CEO

Forward-looking Statements

This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to a contemplated bank credit facility. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the possibility that Huntington National Bank will not be satisfied with its due diligence investigation of the Company, the Company and the Bank will not be able to settle on the terms of definitive loan documentation, the Company may not have, at all relevant times, sufficient reserves to support advances on the proposed credit facility, or the TSX Venture Exchange will not accept the subject credit agreement for filing, and the other risk factors associated with the Company's business and discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F (Amended) dated January 9, 2007.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Unbridled Energy Corporation
    Mark Mastilliak
    Investor Relations Consultant
    Website: www.unbridledenergy.com