CALGARY, ALBERTA--(Marketwired - Oct. 15, 2013) -
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Rooster Energy Ltd. ("Rooster" or the "Company") (TSX VENTURE:COQ) -Rooster announced today that effective October 11, 2013, it entered into a secured Credit Facility which provides for borrowing up to CDN $8 Million, to be used for general corporate purposes. The initial advance under the Credit Facility is CDN $4 Million (less a 2% original issue discount). The Credit Facility is fully subordinated to an existing secured term loan in the principal amount of US $22.5 million that Rooster entered into as of October 22, 2012 and which matures on October 22, 2014.
The interest rate is 9% on all advances under the Credit Facility and the maturity date is 180 days after the full satisfaction of the terms of the existing $22.5 million loan. The Credit Facility is secured only by certain oil and gas properties owned by Probe Resources US Ltd., a wholly owned subsidiary of Rooster, and Rooster is the guarantor of any indebtedness owed under the Credit Facility.
The K2 Principal Fund L.P. serves as "Administrative Agent" under the Credit Facility. K2 is also a participating lender in the Credit Facility along with Chester F. Morrison, Jr. Both K2 and Mr. Morrison are related parties to Rooster with Mr. Morrison serving as Chairman of the Board of Directors. None of the participants in the Credit Facility is a chartered bank, trust company or treasury bank.
ABOUT ROOSTER ENERGY LTD.
The Company is an independent oil and natural gas exploration and production company based in Houston, Texas that is focused on the development of resources in the shallow waters of the U.S. Gulf of Mexico. At June 30, 2013, our primary assets consist of interests in 17 producing oil and/or natural gas wells and interest in 19 federal leases or blocks. The Company is the operator of the majority of its properties and daily oil and gas production.
Investors are welcome to visit our website at www.roosterenergyltd.com.