Contact Information: Contact: Brad Holmes Investor Relations (713) 654-4009 or Don Kirkendall President (832) 369-6986
Petro Resources Closes $65 Million Credit Facility
| Source: Petro Resources Corporation
HOUSTON, TX--(Marketwire - September 9, 2008) - Petro Resources Corporation (AMEX : PRC ) ("the
Company") announced that it closed two credit facilities with CIT Capital
USA Inc. totaling $65 million on September 9, 2008. The Credit Agreement
is a $50 million revolving facility with an initial borrowing base of $17
million. The Second Lien Term Loan is a $15 million facility which was
fully drawn at closing.
The Company has utilized approximately $16.3 million of the facilities to
retire all mezzanine debt incurred in acquiring its Williston Basin assets.
The Company is permitted to use the remaining available funds to finance
its capital program, optionally redeem its outstanding preferred stock, and
fund general corporate purposes.
As part of the transactions, the Company entered into a series of hedges
with Macquarie Bank Limited. These swap agreements cover approximately
127,000 barrels of oil at a swap price of $105.45 per barrel from October
2008 through December 2011.
CIT Capital Securities LLC was the Sole Lead Arranger and Sole Bookrunner
for the transaction. Canaccord Adams served as investment advisor to the
Company.
Management Comments
Wayne Hall, Chief Executive Officer, commented, "The closing of these
credit facilities is another significant milestone in our brief history.
These facilities will provide a lower cost of borrowing, provide more
flexibility in the funding of our capital program, and provide the base for
a future property acquisition."
About Petro Resources
Petro Resources Corporation is an independent exploration and production
company engaged in acquisitions of exploratory leases, acquisitions of
producing properties, secondary enhanced oil recovery projects, exploratory
drilling, and production of oil and natural gas in the United States.
The Company is currently producing oil and natural gas from a
geographically and geologically diversified reserve base. The Company's net
total proved reserves of more than 3 million barrels of oil equivalent is
distributed among 18 fields in the states of North Dakota, Texas, and
Louisiana.
For more information, please view our website at
www.petroresourcescorp.com.
Forward-looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various properties, (2)
the expected production and revenue from its various properties, and (3)
estimates regarding the reserve potential of its various properties. These
statements are qualified by important factors that could cause the
Company's actual results to differ materially from those reflected by the
forward-looking statements. Such factors include but are not limited to:
(1) the Company's ability to finance the continued exploration and drilling
operations on its various properties, (2) positive confirmation of the
reserves, production and operating expenses associated with its various
properties; and (3) the general risks associated with oil and gas
exploration and development, including those risks and factors described
from time to time in the Company's reports and registration statements
filed with the Securities and Exchange Commission, including but not
limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 2007 and Form 10-Q for the quarters ended March 31, 2008 and
June 30, 2008. The Company cautions readers not to place undue reliance on
any forward-looking statements. The Company does not undertake, and
specifically disclaims any obligation, to update or revise such statements
to reflect new circumstances or unanticipated events as they occur.