1. Most Discussed
  2. Gainers & Losers

funding in place

  1. towie

    27,917 posts.









    Secures Funding

    Document date: Mon 13 Jan 2003 Published: Mon 13 Jan 2003 08:48:49
    Document No: 230603 Document part: A
    Market Flag: Y
    Classification: Placement
    KALREZ ENERGY LIMITED 2003-01-13 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Kalrez advises it has finalised negotiations and has agreed with the
    South Australian investment company Tulloch Lodge Limited ("Tulloch")
    to provide a funding combination of two (2) million dollars.

    The agreed funding combination is in two (2) parts:-

    PLACEMENT OF SHARES

    Tulloch has agreed to subscribe for 100 million Kalrez fully paid
    shares at a price of 0.50 cent equal to $500,000.00. This agreement
    is not subject to any fee obligation.

    The proceeds from the share subscription shall be used to retire
    loans and satisfy all current Australian creditors.

    On completion of this task the company shall be left with
    approximately $200,000.00 in working capital. This shall ensure that
    all funding in place for Kalrez's Indonesian based activities do not
    suffer any disruption by demands for Australian funding.

    Russell Brimage the Kalrez Indonesian based executive director, says
    this will give him and his staff great relief.

    Kalrez advises, the present Indonesian funding arrangements in place
    are more than adequate until the company is in receipt of the
    December Bula oil lifting funds totalling US $1.22 million or
    approximately A $2.0 million dollars.

    LOAN FACILITY

    Tulloch has agreed to loan the company a further A $1.5 million
    dollars in the form of a loan facility.

    The loan facility is for 18 months, interest rate 8% on monies
    drawn down, Tulloch will receive a facility fee of 20 million shares,
    the company took this action to conserve cash.

    The loan facility, is on a draw down of $250,000.00 stack basis, and
    will be dedicated to funding the Seram JV cash calls.

    It has been agreed the first draw down of approximately A $750,000.00
    will be on the 31st January 2003.

    These funds shall be to retire all default cash calls and associated
    default interest demands. The balance of the funding shall be to
    satisfy further Seram JV cash calls.

    Persal and Company have also consented to make available the earlier
    announced A $250,000.00 loan facility on a need basis until 31st
    March 2003.

    All the facilities give the company confidence and a "good feeling"
    for the future and shall along with the positive cash flows from Bula
    and the Oseil projects shall be a comfort, from the sudden dread of
    going from one default notice to another and still trying to survive.

    The real big plus out of the funding will be, it puts Kalrez on good
    standing with the Seram JV operator Kufpec (Indonesian) Limited
    ("Kufpec").

    This will position the company in its own right to seek Kufpec's
    authorisation to investigate other opportunities on the Seram
    Contract Block as a partner of good standing.

    Opportunities include the possibilities of a number of sole risk
    targets that Kufpec may disregard because of their size but would be
    ideal for a company of Kalrez size.

    Eddie Smith the company's chairman states, with this funding from
    (Tulloch) in place and including the December Bula lifting of
    approximately A$2.0 million plus the recent Oseil wells coming on
    stream the company has turned the corner and Kalrez shareholders can
    now look forward to a real future for the company.

    For further information please contact Mr E Smith (Telephone: 08 9362
    9330 or Fax: 08 9362 9331).

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top