200 holes?
Is this better than a floorless convertable?
ADMIRAL BAY GETS COMMITMENT FOR US$40 MILLION CREDIT FACILITY FROM MACQUARIE BANK LTD.
- Initial availability of US$15 million will fund accelerated drilling program
Denver, Colorado 7 February 2006
Admiral Bay Resources Inc. (TSX Venture: ADB) announced that it has executed a commitment letter with Macquarie Bank Ltd. for a US$40 million credit facility. Initial availability will be US$15 million to be used for development of the Company's properties in southeast Kansas and Pennsylvania. Additional availability will be based on a borrowing base calculation including proved reserves from new wells drilled or acquired. The facility will have an interest rate that will float based on LIBOR and will initially be approximately 7.00% and could increase based on the percentage of availability drawn. In addition, Macquarie Bank will be issued warrants equal to 5% of the fully diluted outstanding shares of the Company. The warrant exercise price will be set at a 50% premium to the average daily share price for the 30 days prior to closing and will be subject to regulatory approval. The Company and Macquarie Bank are currently finalizing a development plan for calendar 2006 that will include the drilling of over 200 wells along with related facilities. The loan is subject to customary closing conditions and documentation. The Company expects to close the credit facility in the next 30 days.
Admiral Bay President, Steve Tedesco commented "This credit facility, combined with the proceeds from our recent equity placements, gives the Company the necessary capital to aggressively develop its extensive acreage position, increase production and proved reserves, as well as pursue attractive acquisitions if they present themselves. We look forward to working with Macquarie Bank to grow the Company and increase shareholder value."
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging coal bed methane (CBM) production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
About Macquarie Bank Limited
Macquarie Bank Limited is a diversified international provider of specialist financial and investment banking services with over 7,600 employees in 23 countries. Headquartered in Sydney, Australia, Macquarie Bank is listed on the Australian Stock Exchange and has a market capitalisation of approximately US$10.8 billion (as at February 3, 2006). As at September 30, 2005 Macquarie Bank had total assets of US$85.3 billion and maintains credit ratings of F1/A+ (Fitch), P1/A2 (Moody's) and A1/A (Standard & Poor's).
Macquarie Bank Limited provides debt and equity capital for independent oil and gas producers, and markets these services through its Representative Office in Texas
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