Argosy Energy Inc.
TSX : GSY

Argosy Energy Inc.

May 16, 2012 13:32 ET

Argosy Energy Inc. Announces Increase in Operating Line to $22 Million

CALGARY, ALBERTA--(Marketwire - May 16, 2012) - Argosy Energy Inc. ("Argosy" or the "Company") (TSX:GSY) is pleased to announce that the Company's banker, the National Bank of Canada (the "Bank"), has completed a review of the Company's credit facilities and has provided a $26 million credit facility to the company consisting of a revolving operating line (the "Revolver") of $22 million and an acquisition development line (the "Acquisition Line") line of $4 million. The Revolver has been increased to $1 million from its previous limit of $21 million and the Acquisition Line has been decreased from its previous limit of $5 million to $4 million.

The Revolver is used by the Company in connection with its day to day operations. The Company has drawn approximately $15.8 million against this line at this date. The Acquisition Line can only be accessed for certain acquisition and development activities. The Acquisition Line is presently undrawn. The terms and conditions related to such facilities remain substantially the same as that which was disclosed in the Company's 1st quarter 2012 report that was released on May 1, 2012.

By maintaining the Company's aggregate credit facility at $26 million following the sale of the Company's Ante Creek property, the Bank has evidenced confidence in the Company's asset base despite recent downward trends in commodity pricing.

The next review of the Company's credit facilities is scheduled on or before August 1, 2012 but may be set at an earlier date at the discretion of the Bank.

ABOUT ARGOSY ENERGY INC.

Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.

Advisory Regarding Forward-Looking Information

This press release contains forward-looking information concerning including but not limited to the the Company's banking arrangements. Although Argosy believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. 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 the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form as well as other filings of the Company with Canadian securities regulators, which filings are available under the Corporation's profile at www.sedar.com.

Contact Information

  • Argosy Energy Inc.
    Mr. Peter Salamon
    President and CEO
    (403) 269-8846

    Argosy Energy Inc.
    Mr. Tom Dalton
    Vice President Finance and CFO
    (403) 269-8846

    Argosy Energy Inc.
    2100, 500 - 4th Avenue S.W.
    Calgary, Alberta
    investor@argosyenergy.com
    www.argosyenergy.com