PRUS$1,000,000 DEBT FINANCING COMPLETED; UPDATE ON LOUISIANA OIL AND GAS PROJECT
Regent Ventures Ltd. has closed its debt financing under the loan agreements announced in the company's Stockwatch news release of Aug. 17, 2010, by which the company has raised $1-million (U.S.) primarily to finance the drilling of the second and third wells on the company's oil and gas interest in the Francis Thompson lease located in northern Louisiana.
Pursuant to the loan agreement, the loan is for a term of one year, bears simple interest at a rate of 8 per cent per annum, is payable monthly and is convertible, at the election of the lender, to shares in the capital of Regent at a rate of one share for every 9.5 cents of loan principal converted. On conversion, any shares issued would be subject to a hold period and be restricted from trading for four months from the date of conversion. Regent issued a finder's fee with respect to the loan consisting of $25,885 in cash and 272,474 shares in the capital of Regent. The finder's fee shares are subject to a hold period and are restricted from trading until Dec. 20, 2010.
Louisiana project
Regent is also pleased to announce that completion of its Francis Thompson No. 1 well will begin on or before Sept. 5, 2010, or as soon as its contracted completion rig becomes available. Initial completion will consist of running a gamma-ray-neutron-cased hole log, perforating the deepest identified pay zone and swabbing the well for production. At this time, it is expected that fracture stimulation will not be required for this well, but nitrogen stimulation may be used, if necessary.
Construction of the road to the second test well site will begin no later than Saturday, Aug. 21, 2010. Regent, through its operator, J4 Exploration & Production, has contracted the same rig that drilled the first well, and which has remained on site, to drill the second test well on its interest in the Francis Thompson lease, Delhi field, Madison and Richland parishes, Louisiana.