CALGARY, ALBERTA--(Marketwired - Nov. 8, 2016) - Jura Energy Corporation ("Jura") (TSX VENTURE:JEC) announced today that it and its principal shareholder, Eastern Petroleum Limited ("EPL"), have agreed to the following amendments to Jura's wholly-owned subsidiary Spud Energy Pty Ltd.'s ("SEPL") existing CAD$11 million loan facility (the "Facility") provided by EPL with effect from October 1, 2016 (the "Effective Date"):
- The loan currency will be US dollars, the reporting currency for Jura.
- The interest rate has been increased from US Dollar 3-month LIBOR plus 4% compounded quarterly to a more commercial rate of 11% compounded quarterly.
- The maturity date, following which the Facility was to be payable upon demand, and which was originally the earlier of: (a) February 20, 2014 and (b) ten (10) Business Days after the closing date of a qualifying financing, has been replaced with a quarterly repayment schedule providing SEPL with a grace period so that it does not make its first payment until January 1, 2018. The Facility is to be repaid in full by October 1, 2018.
The Facility is fully drawn and on the Effective Date there was CAD$12,078,531 comprised of principal and interest, outstanding under the Facility. That amount has been converted to $9,208,303 United States dollars.
Jura is a guarantor under the Facility. EPL has the option to convert, in whole or in part, the principal and accrued interest under the Facility for a subscription of Jura common shares (the "Common Shares"), on the basis of one Common Share for each CAD$1.00 so converted, subject to the restriction that, during any six month period, the aggregate number of Common Shares issuable to EPL under the conversion option may not exceed 10% of the number of Common Shares outstanding, on a non-diluted basis, prior to the date of the first conversion.
About Jura Energy Corporation
Jura is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties in Pakistan. Jura is based in Calgary, Alberta, and listed on the TSX Venture Exchange trading under the symbol JEC. Jura conducts its business in Pakistan through its subsidiaries, Frontier Holdings Limited and Spud Energy Pty Limited.
Forward Looking Advisory
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. The words "would", "enable", "utilize", "bring" and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include information concerning Jura's ability to make future payments of principal and interest under the Facility.
The forward-looking statements contained in this press release are based on management's beliefs, estimates and opinions on the date the statements and are made in light of management's experience, current conditions and expected future development in the areas in which Jura is currently active and other factors management believes are appropriate in the circumstances. Jura undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless required by applicable law.
Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond Jura's control. These assumptions and risks include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, weather, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in applicable law. Additionally, there are economic, political, social and other risks inherent in carrying on business in Pakistan. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See Jura's Annual Information Form for the year ended December 31, 2015, available on SEDAR at www.sedar.com, for further description of the risks and uncertainties associated with Jura's business.