SOURCE: EFLO Energy Inc.

EFLO Energy Inc.

October 31, 2013 08:30 ET

EFLO Energy Completes Convertible Note Financing

HOUSTON, TX--(Marketwired - Oct 31, 2013) - EFLO Energy, Inc. (OTCQB: EFLO) ("EFLO" or "the Company"), announces the October 30, 2013 completion of a Convertible Note financing in the aggregate principal amount of $2,255,000 (the "Convertible Notes").

"We appreciate the interest and support our investors have demonstrated in this financing... We share their enthusiasm for the potential of our Kotaneelee gas assets", stated EFLO's President, James Hutton. "We also feel", Hutton continued, "that that our planned application to a senior stock exchange, if successful, will significantly expand our ability to commercialize the value of those assets."

The Convertible Notes were sold under the following general terms:

A. The maturity date of the Convertible Notes is eighteen months from the date of issuance.

B. The principal amount of the Convertible Notes is convertible into shares of EFLO common stock at a price of $1.00 per share.

C. The Convertible Notes bear interest at 10% per annum payable, at EFLO's election, in cash or shares of its common stock at a rate of $1.25 per share.

D. The interest rate payable on the Convertible Notes is subject escalation to 12.5% or 15.0% per annum for the entire period during which the Convertible Notes are outstanding, in the event EFLO does not complete its migration to a senior stock exchange within 9 or 12 months, respectively, from date of issuance.

E. EFLO also issued stock purchase warrants in connection with the Convertible Note Offering providing for the purchase of up to 1,127,500 shares of its common stock (1 full share for each $2.00 invested in the Convertible Notes") at an exercise price of $1.25 per share for a period of three years (the "Stock Purchase Warrants").

In aggregate, 3,382,500 shares of EFLO's common stock (comprised of 2,255,000 shares issuable on conversion of the principal of the Convertible Notes and 1,127,500 shares issuable on exercise of the Stock Purchase Warrants), or such greater number of shares as may be issuable upon election of the interest repayment in common stock under the terms of the Convertible Notes, has been reserved for issuance upon conversion of the Convertible Notes or exercise of the Stock Purchase Warrants in accordance with their terms.

About EFLO Energy, Inc.

EFLO is engaged in the acquisition, exploration and development of oil and gas properties in the United States and Canada. During the period from July 18, 2012 through October 17, 2012, EFLO acquired working interests totaling 53.65% in the Kotanelee Gas Project (the "KGP") located in the Yukon Territory in Canada. EFLO believes the KGP has significant conventional and shale gas potential and is supported by an environment of growing investment in gas processing and export in the Pacific Northwest.

The KGP covers 30,542 gross acres in the Yukon Territory in Canada, and includes; a gas dehydration plant (capacity: 70 million cubic feet per day), one shut-in gas well, one water disposal well (capacity: 6,000 barrels per day), and two suspended gas wells. The KGP has a fully developed gas gathering, sales and delivery infrastructure, airstrip, roads, flarestack, storage tanks, barge dock and permanent camp facilities.

EFLO is pursuing the acquisition of additional working interests in the KGP.

Forward-Looking Statements: This press release includes forward-looking statements as that term is defined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.

ON BEHALF OF THE BOARD OF DIRECTORS

EFLO Energy, Inc.

Contact Information

  • Contact:

    Keith Macdonald
    Chief Executive Officer
    1 (403) 246-8443

    H Wayne Hamal
    Chief Operating Officer
    1 (281) 260-1038

    INFO@efloenergy.com