RE: additional newshttps://www.proactiveinvestors.co.uk/companies/news/42155/transeuro-energy-unveils-funding-plans-ensure-oil-production-in-next-12-mths-42155.html
Management seems to be very sure about a successful fraccing as well as successful development of business afterwards, otherwise how do they want to pay the money back as well as 12% interest per year!?
Cheers, Neo
Transeuro Energy unveils funding plans ensure oil production in next 12 mths
4:15 pm by Jamie Ashcroft
The funding ensures Transeuro can develop seven of its existing well up to production in the next twelve months.The funding ensures Transeuro can develop seven of its existing well up to production in the next twelve months.
Transeuro Energy (CVE:TSU) today announced plans to raise C$10 – 15.5 million (NOK 60-90 million) with the issue of convertible bonds.
On top of that there is also a plan for another C$20 million funding facility.
The company says the proceeds will be used for general corporate purposes. And it ensures Transeuro can develop seven of its existing well up to production in the next twelve months.
“The planned activities include rig work-overs, hydraulic fracturing, acidizing and installation of the necessary production facilities and flow lines,” the company said.
“The target is to increase production rates and sales revenues and to reduce the break even production cost in Canada.”
The convertible bond will carry a 12 per cent annual interest rate and they can be converted for the equivalent of C
.146 (NOK0.85). This issue has been arranged by Oslo based broker Fondsfinans.
The convertible debt funding has a minimum bond size of NOK60, and this has already been subscribed for. The subscription period will now remain open until 5pm (Norwegian time) on Wednesday 2 May.
Meanwhile the C$20 million facility is expected to be formally approved within a week.