The Board of Austin Exploration (“Austin” or “the Company” (ASX:AKK) today announced that it has decided to postpone the substantial debt funding arrangements previously referenced. The recent successes at its Eagle Ford properties in Texas, Mississippi and Kentucky have resulted in rapid production growth and an increase in its reserves base. As announced to the ASX on November 3, the Company has turned cash flow positive and now has access to traditional, incremental, debt funding and proposes utilizing these in the short term and pending further clarity on oil prices and proposed drilling programs.
The Company is pleased to report that it has secured an incremental revolving facility (at a 3.5% interest margin) with CHASE Bank that will enable the Company to fund currently scheduled drilling commitments at its Eagle Ford property in Texas. As production increases over coming months with committed new wells coming into production, the company will re-evaluate broader debt finance and other facilities as appropriate.
AKK Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
