BPI Energy Secures Advancing Term Loan of Up to $75 Million
30 Julho 2007 - 5:22PM
Business Wire
BPI Energy Holdings, Inc. (Amex:BPG), an independent energy company
engaged in the exploration, production and commercial sale of
coalbed methane (CBM) in the Illinois Basin, today announced that
its wholly owned subsidiary BPI Energy, Inc., has closed on a
Senior Secured Advancing Line of Credit from GasRock Capital of up
to $75.0 million. The line of credit comprises an immediate
commitment of $10.2 million plus an additional capacity of up to
$64.8 million that may be advanced by GasRock in its discretion,
which is expected to be based on its quarterly reviews of BPI�s
operations. Proceeds are expected to be used for continued
development-well drilling at the Delta Project, drilling of new
test wells, pilot projects as well as lease acquisitions. President
and Chief Executive Officer James G. Azlein said: �This financing
puts BPI Energy one step closer to becoming financially
self-sufficient. Working closely with GasRock, we were able to
successfully structure a facility uniquely suited to BPI�s specific
needs to drill development wells while expanding and testing its
acreage position�without incurring any dilution in the equity of
our current shareholders. With the potential capacity available to
us under this facility, we look forward to furthering our mission
to maximize shareholder value.� The annual interest rate on the
credit line is 15 percent for the first 12 months. GasRock has an
option to extend the term to 48 months, in which case, the interest
rate will be reduced to 12 percent through the balance of the term.
This financing does not include any pre-payment penalties,
warrants, options or conversion rights that could result in the
issuance of additional equity shares. Upon closing, GasRock has
been assigned an overriding royalty interest (ORRI) of 1 percent in
all leases currently controlled by BPI and an additional 4 percent
ORRI in BPI�s existing wells. BPI will likewise assign GasRock a 4
percent ORRI in any wells drilled, worked over or acquired while
the loan is outstanding. BPI has a 100 percent working interest in
100 percent of its current acreage position. To be added to BPI
Energy�s e-mail distribution list, please click on the link below:
http://www.clearperspectivegroup.com/clearsite/bpi/emailoptin.html
About BPI Energy BPI Energy (BPI) is an independent energy company
engaged in the exploration, production and commercial sale of
coalbed methane (CBM) in the Illinois Basin, which covers
approximately 60,000 square miles in Illinois, southwestern Indiana
and northwestern Kentucky. The company currently controls the
dominant CBM acreage position in the Illinois Basin at
approximately 500,000 acres. News releases and other information on
the company are available on the Internet at:
http://www.bpi-energy.com Some of the statements contained in this
press release may be deemed to be forward-looking in nature,
outlining future expectations or anticipated operating results or
financial conditions. Such forward-looking statements are subject
to known and unknown risks, uncertainties and other factors that
could cause actual results or conditions to differ materially from
the information expressed or implied by these forward-looking
statements. Some of the factors that could cause actual results or
conditions to differ materially from our expectations, include, but
are not limited to: (a) our inability to generate sufficient income
or obtain sufficient financing or draws under our advancing term
credit agreement to fund our operations or future drilling plans,
(b) our inability to retain our acreage rights at our projects, at
the expiration of our lease agreements, due to insufficient CBM
production, or for other reasons; (c) our failure to accurately
forecast CBM production, (d) displacement of our CBM operations by
coal-mining operations, which have superior rights in most of our
acreage, (e) our failure to accurately forecast the number of wells
that we can drill, (f) a decline in the prices that we receive for
our CBM production, (g) our failure to accurately forecast
operating and capital expenditures and capital needs due to rising
costs or different drilling or production conditions in the field,
(h) our inability to attract or retain qualified personnel with the
requisite CBM or other experience, and (i) unexpected economic and
market conditions, in the general economy or the market for natural
gas. We caution readers not to place undue reliance on these
forward-looking statements.
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