Balcatta-based oil and gas explorer Sun Resources has secured a $1.5 million mezzanine finance facility with West Perth-based managed investment scheme LinQ Resources Fund.
Balcatta-based oil and gas explorer Sun Resources has secured a $1.5 million mezzanine finance facility with West Perth-based managed investment scheme LinQ Resources Fund.
Worth a 10 per cent coupon annually to LRF, the facility will be used to advance Sun's Flour Bluff gas project on the Gulf Coast of Texas. Production is expected in early 2006.
The full statement from LRF can be read below.
LinQ Resources Fund
ASX Announcement
23 January 2006
$1.5 million Financing Facility Signed with Sun Resources NL
LinQ is pleased to announce that final documentation has been executed today for the
provision of a $1,500,000 mezzanine finance facility to Sun Resources NL ("Sun"),
which will be utilised by Sun for working capital for the Flour Bluff Gas Project.
The Flour Bluff Gas Project is located on the Gulf Coast of Texas with production
planned to commence in early 2006. Current reserve estimates are 190 BCF gas and
3.57 million barrels of oil with additional potential of 102 BCF gas and 1.83 million
barrels of oil.
The LinQ facility has a term of 2 years and is available to be drawn until 31 August
2006. For provision of the facility LinQ will be issued with the following options,
which are subject to shareholder approval:
2 million 29 February 2008 options with an exercise price of $0.25 per option
2 million 30 April 2008 options with an exercise price of $0.35 per option
2 million 30 June 2008 options with an exercise price of $0.45 per option.
The facility attracts a coupon of 10% per annum.
About LinQ Resources Fund ARSN 108 168 190
The LRF is a registered managed investment scheme, which successfully completed
an initial public offer in which $83 million was raised and it listed on the Australian
Stock Exchange on 20 January 2005. The Fund's net tangible asset value at 31
December 2005 was $145 million. LinQ Capital Limited is the Responsible Entity.
LRF is an actively-managed resources fund which specialises in investments in small
to medium resources companies both in Australia and overseas. The Fund may invest
in companies at all stages of development from exploration through to production,
although the focus in pre cash flow companies is mostly on investment in companies
in the later stage exploration and economic evaluation phases between discovery and
completion of bankable feasibility studies. The Fund aims to provide both yield and
capital growth for its investors.