Brisbane, Australia, Dec 13, 2012 - (ABN Newswire) - Pryme Energy Limited (ASX:PYM.AX - News) is pleased to announce that its wholly-owned subsidiary Pryme Oil and Gas LLC has executed a $100,000,000 Senior Secured Term Credit Agreement (Term Facility) with Macquarie Bank Limited (Macquarie Bank) to fund its share of exploration and development costs for the Turner Bayou project in Avoyelles Parish Louisiana, USA.
The Term Facility is secured only against the assets of Pryme Oil and Gas LLC, which holds Pryme's interest in the Turner Bayou project, and is non-recourse to the parent company and all other projects and subsidiaries of Pryme. The Term Facility repays and replaces the $5 million Bridge Loan Facility which was provided by Macquarie Bank in relation to the Rosewood Plantation 21H No.1 well in the Turner Bayou Chalk Project. The key terms and conditions of the Term Facility are set out below.
"We are very pleased to have closed on the one hundred million dollar term loan facility with Macquarie Bank. We can now continue to focus on unlocking the significant value of the Turner Bayou project including completing the Rosewood Plantation 21H No.1 well which is currently underway," said Justin Pettett, Pryme's Managing Director. "The strength and security of our funding arrangement with Macquarie means that existing shareholders and new investors can be confident that Pryme is well funded to move forward on the opportunities ahead of us at Turner Bayou. The funding arrangement sets Pryme apart from its peers and enables it to concentrate on building value for shareholders."
About Turner Bayou
The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Pryme has a 40% working interest in 25,029 acres (10,011 net acres) in the Turner Bayou project and is initially targeting development of the Austin Chalk horizon. In addition to the Austin Chalk potential of the Turner Bayou project area, exploration drilling within Pryme's Turner Bayou leases has intersected the Tuscaloosa Marine Shale which is analogous to the prolific Eagle Ford Shale in South Texas.
About Pryme Energy Limited:
Pryme Energy Limited (ASX:PYM.AX - News) (OTCQX:POGLY - News) is an Australian company exploring for oil and gas in the Gulf Coast states of the USA. Pryme currently has three oil and gas producing projects and substantial exploration acreage. The Company's immediate focus is the development of a major phase oil Austin Chalk formation exploration and production play, with Tuscaloosa Marine Shale potential, in its Turner Bayou project in Avoyelles Parish, Louisiana. Louisiana is the fifth largest oil and gas producing state in the US.
Pryme's board of directors and management team have over 100 years of energy industry experience with extensive local knowledge underscored by proven track records. Pryme applies advanced geological science to drive early stage exploration projects through to production.
Pryme Energy Limited T: +61-7-3371-1103 F: +61-7-3371-1105 WWW: www.prymeenergy.com
Pryme Energy Limited
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