Rooster Energy PRBEQ

Bank keep backing... and 42,7M$

[Sheperd]

In May and June 2016, the Company executed two new promissory notes with a bank to finance a portion of its insurance premiums in the aggregate amount of $578,250 and $1,601,713, respectively. The promissory note executed in May requires monthly payments of $58,775 and matures in March 2017. The promissory note executed in June requires monthly payments of $148,240 and matures in May 2017. Both these notes bear interest at 3.50% per annum and are secured by the unearned premiums of the insurance policies being financed.

Of the total fixed fees of the decommissioning contracts of $153.5 million, approximately $91.4 million has been paid to the Company and an additional $3.0 million has been invoiced through September 30, 2016. The remaining amount to be collected of $59.1 million, less the estimated future abandonment costs to be incurred of $39.4 million, is approximately $19.7 million, which, when combined with the recognition of deferred revenues, represents the approximate future decommissioning contracts revenue to be earned from the decommissioning contracts subsequent to September 30, 2016. The Company expects to receive $42.7 million of the remaining $59.1 million over the next twelve months.