HOUSTON, TX--(Marketwire - Sep 12, 2012) - Vanguard Energy Corporation (OTCQX: VNGE), an oil development and production company, announces it has closed the convertible debt offering.
On August 31, 2012 the company completed the sale of convertible secured notes to a group of private investors. The notes bear interest at 15% payable quarterly and mature on June 15, 2015, they are convertible into common shares at a conversion price of $1.25 per share. Notes in the cumulative total amount of $5.2 million were sold for cash and notes for $3.0 million were exchanged for notes sold in 2010. As a result, the outstanding principal balance of the notes sold in 2010 is $325,000 as of August 31, 2012.
Proceeds from this financing will be used to fund an accelerated drilling program at the Companies Batson Dome Field in southeast Texas and to pay of the remaining balance of the 2010 notes on the maturity date of October 31, 2012.
Mr. Warren Dillard, President of Vanguard Energy, said: "I am very pleased in both the terms of our offering and the final results. Not only did we raise sufficient new capital to fund the accelerated drilling program at our Batson Dome Field, but we able to exchange the majority of the notes sold in 2010 into this offering allowing us to focus on field operations and growing Vanguard for our shareholders."
About Vanguard Energy
Vanguard Energy is an oil drilling and production company with a focus on established oil fields in southeast Texas. Concentrating on oil properties in established areas with proven production, Vanguard applies its managerial expertise to maximize production while minimizing risk. Vanguard is focused on creating shareholder value by building cash flow and oil reserves through an aggressive, focused acquisition and development program in the prolific southeast Texas oil producing region. Vanguard's initial area of operation is in the famous Batson Dome Field where it controls 500 strategic acres with substantial oil reserves. For more information visit the Company's web site at www.vanguardenergycorp.com
This press release and other statements Vanguard Energy may make in the future contain forward-looking statements that relate to Vanguard's plans, objectives and future estimates. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of Vanguard's Registration Statement on Form S-1 and in its periodic filings with the Securities and Exchange Commission. Vanguard makes no commitment to update any forward-looking statement, or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law.