Admiral Bay gets $100 million credit facility

By Sara Rosenberg

New York, Aug. 30 - Admiral Bay Resources Inc. closed on a new $100 million amended and restated advancing term credit facility due Aug. 29, 2010, according to a company news release.

GasRock Capital LLC provided the loan, which was completed on Aug. 29.

Pricing on the loan is initially around 13%. The interest rate will float based on Libor.

Under the terms of the facility, the company has initial availability of $22.5 million, with a further $2.5 million available upon delivery of a new reserve report, which is anticipated to be complete by Sept. 30.

Further advances will be subject to a borrowing base calculation, including proved reserves from new wells drilled or acquired.

Proceeds will be used to pay off the outstanding debt on its existing credit facility of $18.4 million and to expedite the development of its unconventional gas projects in the Cherokee Basin in southeastern Kansas and the Appalachian Basin in Pennsylvania.

"We are pleased that after a lot of hard work, we have reached a favorable conclusion to the strategic alternative process," said Steve Tedesco, president of Admiral Bay, in the release.

"With the funding from this facility, we can now aggressively move forward to connect all wells that have been awaiting tie-in from the 2006 development program and then get back to drilling new wells in the fourth quarter of the year."

Admiral Bay is a Centennial, Colo.-based emerging unconventional gas production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.