debt agreement?, page-13

And I'm going to be clear on this...

In email exchange with Phil Thick during a period prior to the EGM I was questioning the debt parameters. Since it was private correspondence I'll share the question and paraphrase the response.

Q: Would the RBL loan carry an interest rate that falls between 8% - 10%. If not is it higher or lower.

A: Many RBL loans are in the 3-4% range in the US. Small companies typically see higher rate starting loan. As reserves grow and the low rate revolver grows.


Compare the NSE debt announcement to Samson Oil and Gas recent similar facility. (I don't hold SSN).

http://www.businesswire.com/news/home/20140127006385/en/Samson-Oil-Gas-Enters-US25-Million-Credit#.UzihgBC_75M

"Samson Oil and Gas has today finalised a new credit facility with Mutual of Omaha Bank for up to $25 million, with an initial borrowing base of US$8 million. The facility has a three year term with an interest rate of LIBOR plus 3.75% (approximately 3.908% for January 2013)"


It is a red flag by not noting the Lender or the rate terms IMO (having been burned before by toxic debt masquerading as Senior Secured Term Debt).

Opaque is the best description for this annc.