CALGARY, Oct. 22 /CNW/ - Cirrus Energy Corporation ("Cirrus") (TSXV: CYR)
and its wholly owned subsidiary Cirrus Energy Nederland B.V. are pleased to
announce that they have signed a loan facility (the "Facility") totalling
30 million euro. The Facility, which is fully underwritten by The Royal Bank
of Scotland plc ("RBS") is a Secured Revolving Borrowing Base Facility
Agreement and is comprised of a 25 million euro tranche which will support the
funding of both the M1-A and M7-A development projects as well as a 5 million
euro tranche which is available in the event of unbudgeted field development
costs. The Facility is repayable at any time subject to certain conditions.
The commitments under the Facility will reduce based on a repayment schedule
which starts on December 31, 2010 and culminates on the Facility maturity date
of June 30, 2012.
Cirrus' President, David Taylor, comments; "Gaining the financial support
of RBS is a significant milestone for Cirrus and, together with our current
working capital of over $60 million, secures the development of the M1-A and
M7-A Fields. We look forward to the successful completion of both projects and
to extending our future banking relationship with RBS as Cirrus grows into a
full cycle international oil and gas company." Hurbinder Mudan, Head of Oil &
Gas, RBS Global Banking & Markets, comments, "We are delighted to have been
given the opportunity to provide this financing to Cirrus in support of its
upstream developments in the Netherlands. This is a milestone transaction for
Cirrus and on top of their recent successful equity raising, this places the
Company in a strong position for growth. We look forward to continuing our
relationship with the Company."
Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and currently has 62.5 million fully diluted common
This press release may include forward-looking statements including
opinions, assumption, estimates and expectations of future production, cash
flow and earnings. When used in this document, the words "anticipate,"
"believe," "estimate," "expect," "intent," "may," "project," "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized. Any number
of important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs, operating
risks, production rates, reserve estimates, changes in general economic
conditions and other factors more fully described from time to time in the
reports and filings made by Cirrus with securities regulatory authorities.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: David Taylor, President and Chief Executive
Officer; Pamela Orr, Vice President, Finance and Chief Financial Officer;
Cirrus Energy Corporation, Suite 350, 926 - 5th Avenue S.W., Calgary, Alberta,
T2P 0N7, Canada, Website: www.cirrusenergy.ca, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530