Condor establishes a US$10 million credit facility
CALGARY, January 10, 2017 – Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI) is pleased to announce that it has entered into a loan agreement to establish a US$10 million secured non-revolving credit facility (the “Credit Facility”).
Pursuant to the Credit Facility, Condor may borrow US$10 million in a single advance from the lender, (the “Loan Proceeds”). The Credit Facility bears interest at 14%, matures 3 years from the date the Loan Proceeds are received (the “Receiving Date”), provides for a one year repayment holiday whereby interest for the first year is due on the first anniversary of the Receiving Date followed by eight payments of US$ 1,250,000 of principal plus interest due quarterly in arrears. The lender will also receive a warrant certificate exercisable into one million common shares of Condor at price of CA$ 2.35 per share which will expire three years from the Receiving Date. Condor expects to receive the Loan Proceeds in January 2017, the receipt of which is subject to certain customary conditions precedent including, but not limited to, the execution of various security documents.
The Loan Proceeds will be used to fund capital expenditures related to drilling, infrastructure and workovers at the Company’s Poyraz Ridge field and for general corporate purposes. Construction of a 15 MMscf/day gas facility, multi-well drilling and completion program and a 6” sales pipeline continue on schedule and the project is targeting first gas by mid-2017. The Loan Proceeds will allow a portion of the Company’s existing working capital to be used for exploration activities adjacent to the Poyraz Ridge field, which is a near term focus given the recent positive results of the Poyraz Ridge drilling program.