Rooster Energy Ltd.
TSX VENTURE : COQ

Rooster Energy Ltd.

June 25, 2015 19:00 ET

Rooster Energy Ltd. Expands and Extends Credit Facility With Issuance of US$60 Million of Senior Secured Notes Due 2018

CALGARY, ALBERTA--(Marketwired - June 25, 2015) - ROOSTER ENERGY LTD. (or the "Company") (www.roosterenergyltd.com) (TSX VENTURE:COQ) is pleased to announce that effective June 25, 2015 it expanded and extended the term of its existing credit facility by entering into an amended and restated Note Purchase Agreement and issuing senior secured notes in the amount of US$60 million (the "Notes"). The Notes will be due on June 25, 2018. The proceeds of the Notes will be used to: 1) repay existing senior secured debt in the principal amount of US$45 million, plus accrued interest and closing costs; 2) fund the Company's development drilling program; and 3) provide for working capital and other general corporate purposes.

The Notes are secured by a first priority security interest, lien and mortgage on all of the assets of the Company. The Notes bear interest at a rate equal to Libor + 11.5% per annum with interest payments due monthly; the minimum interest rate will be 13.0% per annum. Amortization of the Notes will begin in January 2016.

Robert P. Murphy, President & CEO, commented, "we are pleased that our lenders have shown a high degree of confidence in Rooster's vertically integrated business model by extending the term of the Notes for an additional three years and increasing the amount loaned to US$60 million. The Company has a deep inventory of low-risk development drilling opportunities that we will be developing over the near term targeting 6.1 million barrels of oil equivalent of proved and probable reserves. Additionally our Well Service segment continues to work on internal projects and has also experienced an increase in external utilization over the first quarter of 2015. With the financing in place, along with cash flows from our E&P and Well Services business segments, the Company is well positioned to build value for our shareholders during this opportunistic period in the oil and gas industry".

ABOUT ROOSTER ENERGY LTD.

Rooster Energy Ltd. is a Houston, Texas, based vertically integrated oil and gas exploration production company combined with a well service intervention/plugging and abandonment company focused in the shallow waters of the US Gulf of Mexico. Our primary oil and gas assets consist of producing oil and gas wells located on US federal and state oil and gas leases and service company assets consisting of rigless well plugging and abandonment/intervention units.

Investors are welcome to visit our website at www.roosterenergyltd.com or contact Gary Nuschler, Jr. for all corporate updates and investor inquiries.

Forward Looking Information and Statements

Certain statements and information in this press release may constitute "forward-looking information" or statements as such terms are used in applicable Canadian securities laws. Any statement that expresses, involves or includes expectations of the anticipated benefits of the refinancing or modification of existing debt or future operations (including drill rig commitments and use of proceeds), commerciality of any hydrocarbon discovered, production rates, operating costs, commodity prices, administrative costs, commodity price risk and other components of cash flow and earnings, management activity, acquisitions and dispositions, capital spending, access to credit facilities taxes, regulatory changes, projections, objective, assumptions or future events that are not statements of historical fact should be viewed as "forward-looking statements". Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices, and interest and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on any forward-looking statement in this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Financial outlook information contained in this press release about the Company's prospective cash flows and/or financial position is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook information contained herein should not be used for purposes other than for which it is disclosed herein.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Contact Information

  • Gary Nuschler, Jr.
    Vice President-Finance
    Rooster Petroleum, LLC,
    16285 Park Ten Place, Suite 120
    Houston, Texas, USA 77084
    Telephone: (832) 463-0625