Esrey Announces Debt Settlement
26 March 2014 - 10:04AM
Marketwired
Esrey Announces Debt Settlement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 25, 2014) -
Esrey Energy Ltd. ("Esrey") (TSX-VENTURE:EEL) announces that it has
entered into a debt settlement agreement to settle a portion of the
non-revolving credit facilities owed by the Corporation's wholly
owned subsidiary Kaynes Capital S.a.r.l. ("Kaynes") to arm's length
creditors. Esrey proposes to settle US$2,636,363 (CDN $2,900,000)
of the principal amount and accumulated interest of such
indebtedness through the issuance to a series of creditors of an
aggregate of 10,943,396 common shares at a price of CDN $0.265 per
share (the "Debt Settlement"). As at March 19, 2014, Kaynes owed
approximately US$5,763,080 under the credit facilities and after
giving effect to the Debt Settlement will continue to owe
approximately US$3,126,717. The conversion price is an
approximately 18% premium to Esrey's 30 day VWAP.
The Debt Settlement is subject to the approval of the TSX
Venture Exchange. The shares to be issued under the Debt Settlement
will be subject to a four month hold period.
About Esrey
Esrey is a Canadian exploration and development company focused
on developing oil and gas properties in Papua New Guinea, Poland
and Bulgaria. Esrey holds in Papua New Guinea a 16.85% net interest
in PPL 319 and an 84.25% interest in 3 additional PPLs in northern
Papua New Guinea (which collectively cover approximately 5.5
million gross acres) and a 20% net interest in PRL 13 (which covers
approximately 42,000 gross acres). Esrey has entered into a farm-in
agreement with subsidiaries of Heritage Oil PLC under which those
subsidiaries acquired an 80% interest in PPL 319 and PRL 13,
subject to fulfillment of work commitments under the farm-in
agreement. Esrey has a 42.96% net interest in approximately 734,000
gross acres of prospective shales in Poland together with BNK
Petroleum Inc. Esrey is operator and has a 50% net interest in
approximately 360,000 gross acres of prospective shales in Poland
together with San Leon Energy. Esrey has entered into a farm-in
agreement relating to 405,080 acres of prospective argillite
formation in Bulgaria with Direct Petroleum Bulgaria EOOD, a
subsidiary of TransAtlantic Petroleum Ltd. Esrey also holds a 100%
working interest (80% net revenue interest) in approximately 2,250
net mineral acres of oil and gas leases in Daniels and Sheridan
Counties located in north east Montana as well as a 100% working
interest (79% net revenue interest) in approximately 46,700 net
acres of oil and gas leases in Cascade County, in western Montana.
Esrey shares trade on the TSX Venture Exchange under the symbol
"EEL".
ESREY ENERGY LTD.
David Nelson, President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including information regarding the
proposed debt settlement. Forward-looking information is based on
plans and estimates of management at the date the information is
provided and certain factors and assumptions of management.
Forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause plans, estimates
and actual results to vary materially from those projected in such
forward-looking information. Factors that could cause the
forward-looking information in this news release to change or to be
inaccurate include, but are not limited to, the risks related to
unsatisfactory results of due diligence, international operations
and doing business in foreign jurisdictions, risks associated with
the oil and gas industry and exploratory and development activities
generally (e.g., operational risks in development, exploration and
production, delays or changes in plans with respect to exploration
or development projects or capital expenditures, risks associated
with equipment procurement and equipment failure), the risk of
commodity price and foreign exchange rate fluctuations, risks
related to future royalty rate changes, and risks and uncertainties
associated with securing and maintaining necessary regulatory
approvals, and counterparty risk related to the stability and
viability of the Company's joint venture participants.
Shares Outstanding: 28,819,375
Esrey Energy Ltd.Investor
Relations1-778-373-01031-604-434-1487info@esreyenergy.comwww.esreyenergy.com
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