Turnkey E&P Inc.

Turnkey E&P Inc.

June 26, 2008 17:29 ET

Turnkey E&P Inc. Completes $11 Million Debt Financing

CALGARY, ALBERTA--(Marketwire - June 26, 2008) - Turnkey E&P Inc, ("Turnkey") (TSX:TKY) announced today it has entered into an $11 million debt financing with MCP Funding I, LLC. The financing is a forty eight month term loan bearing interest at 11.04% per annum. Monthly principal and interest payments will be approximately $285,000. In consideration of the financing, Turnkey pledged its four Casing Drilling® rigs and a $1 million certificate of deposit as security. Upon satisfaction of certain financial performance metrics over any four rolling quarters during the term of the loan, two of the rigs and the $1 million certificate of deposit will be released as security. The proceeds from this financing will provide Turnkey with sufficient working capital to fund its business plan for the remainder of the year.

This release and Turnkey's website referenced in this release contain forward-looking statements including expectations of future production and components of cash flow and earnings. Investors are cautioned that assumptions used in the preparation of such information may prove to be incorrect. 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 Turnkey. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices 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 to the uncertainty of reserve estimates, health and safety risks including, without limitation, blowouts and spills, and the uncertainty of estimates and projections of production, costs and expenses. The risks outlined above should not be construed as exhaustive. Investors are cautioned not to place undue reliance on any forward-looking information. Turnkey undertakes no obligation to update or revise any forward-looking statements.

Contact Information

  • Turnkey E&P Inc.
    R. M. (Bob) Tessari
    President and Chief Executive Officer
    (281) 248-8822