TULSA, Okla., Jan. 12, 2012 /CNW/ - American Natural Energy Corporation ("ANEC") (TSX Venture:ANR.U) announced that it has signed a non-binding Term Sheet with an institutional investor. Proceeds of the financing are to be used for the drilling and completion of wells included in ANEC's inventory of Proved Undeveloped reserves ("PUD"). ANEC's PUDs include 7 locations on its Bayou Couba project in St. Charles Parish, Louisiana with potential reserves of 1.4 million barrels of oil.
ANEC will raise a total amount of US$3 million, before fees and expenses through the issuance of a series of US$1 million debentures. The debentures shall be secured by a first priority, perfected security interest and mortgage in oil and gas leases and properties. At no time shall the investor funds exceed 65% of the drilling and completion cost of the PUD's with the balance provided by ANEC generated funds. The debentures are due twelve (12) months from closing and are payable monthly with a mandatory redemption fee equal to 10% and interest of 5%.
The Investor shall be paid an Equity Incentive Fee of US$150,000 worth of Restricted Shares of ANEC stock. The shares will carry a nine (9) month ratchet whereby either party is obligated to refund (by the Investor) or issue (by ANEC) shares to equal the initial value.
Completion of the funding under the Term Sheet is subject to completion of definitive documentation. Crucible Capital Group, Inc. is representing ANEC in the transaction.
ANEC is a Tulsa, Oklahoma based independent exploration and production company with operations in St. Charles Parish, Louisiana. For further information please contact Michael Paulk, CEO at 918-481-1440 or Steven P. Ensz, CFO at 281-367-5588.
Neither the 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.
This Press Release may contain statements which constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, including statements regarding the plans, intentions, beliefs and current expectations of ANEC, its directors, or its officers with respect to the future business, well drilling and operating activities and performance of ANEC. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The actual results and outcome of events may differ materially from those in the forward-looking statements as a result of various factors. The levels of and fluctuations in the prices for natural gas and oil and the demand for those commodities, the outcome of ANEC's development and exploration activities, including the success of its current and proposed well drilling activities and the availability of capital to pursue those activities could affect ANEC and its future prospects. Important additional factors that could cause such differences are described in ANEC's periodic reports and other filings made with the Securities and Exchange Commission and may be viewed at the Commission's Website at http://www.sec.gov.
SOURCE American Natural Energy Corporation
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