TUSK Energy Corporation
TSX : TSK

TUSK Energy Corporation

December 18, 2008 08:00 ET

TUSK Strengthens Balance Sheet

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - TUSK Energy Corporation ("TUSK") (TSX:TSK) is pleased to announce that its demand credit facility has been increased to $76.0 million from $70.0 million. The facility, which is available through two Canadian chartered banks, may be periodically reviewed by the lenders. The next scheduled review will be completed no later than April 30, 2009.

TUSK also announces that it has monetized a commodity derivative for proceeds of $17.0 million. The derivative was purchased in May 2008, when TUSK paid $1.25 million to purchase a US $90.00/barrel WTI put option contract on 1,000 barrels of oil per day for the period January 1, 2009 to December 31, 2009. TUSK's results of operations for 2008 will include a realized gain on commodities derivatives of $15.75 million with respect to this transaction.

TUSK continues to hold a second commodity price derivative which is nearing the end of its term. TUSK holds a put option contract on 1,000 barrels of oil per day for the period January 1, 2008 to December 31, 2008 at a WTI price of US $65.00 per barrel. This derivative was purchased in 2007 for $781,000. Total payments received by TUSK on this contract will not be known until the end of 2008.

TUSK Energy Corporation

TUSK is engaged in the acquisition, exploration, development and production of oil and natural gas reserves in three focus areas in the northwestern part of the Western Canadian Sedimentary Basin. TUSK is developing natural gas in the Conroy area of northeastern British Columbia and light oil and natural gas in the Peace River Arch area of Alberta. TUSK has 90,443,888 common shares outstanding.

Contact Information

  • TUSK Energy Corporation
    John Rooney
    Chief Executive Officer
    (403) 264-8875
    or
    TUSK Energy Corporation
    Michael Makinson
    VP Finance
    (403) 264-8875
    Website: www.tusk-energy.com