Calgary, Alberta CANADA, Dec 13, 2012 (Filing Services Canada via COMTEX) -- Western Plains Petroleum Ltd. (WPP - TSX Venture), ("Western Plains" or the "Company") is pleased to announce it has received approval for its amended its credit facilities with the Canadian Western Bank. The Company's limit under the revolving operating demand portion of the Credit Facilities has been fixed at $2,025,000 (a slight reduction from its prior limit of $2,040,000), while the non-revolving acquisition/development facility retains its $300,000 limit. The revolving credit facility and acquisition/development facility bear interest at the bank's prime rate plus 1.5 % per annum and 2.00 % per annum, respectively. The Credit Facilities are secured against the assets of the Company.
The Company also announces it has closed an asset exchange with Nordic Oil and Gas Ltd. ("NOGL"), under which it acquired NOGL's entire undivided 33 1/3% beneficial interest in certain petroleum and natural gas interests located in the Blackfoot area of eastern Alberta (the "NOGL Assets"). Prior to the transaction, each of NOGL, Western Plains and an arms-length industry partner, held undivided 33 1/3% net beneficial interests in these assets. In exchange, Western Plains provided NOGL with (i) a cash payment of $60,000, (ii) a 12 month option to acquire a shut-in well (and spacing unit) in the Lloydminster, Alberta area (the "Option Asset"), (iii) a release of NOGL in respect of amounts owed to Western Plains for past capital and operating expenses incurred on these jointly held Blackfoot properties, and (iv) the transfer of the Company's undivided 50% beneficial interest in 120 acres of petroleum and natural gas rights located in the Lloydminster area of eastern-Alberta ("Western Plains Assets"), such transactions having an effective date of November 1, 2012 (the "Transaction").
The NOGL Assets, comprised of approximately 20 lsds (approximately 800 gross acres), include eight (8) producing heavy oil wells and nine (9) shut-in wells, increased Western Plains' working interest in these properties to 66 2/3%, with Western Plains remaining as operator. The Western Plains Assets transferred to NOGL consist of three (3) producing heavy oil wells on 120 net acres. The Option Asset is comprised of one (1) shut-in well and 40 net acres, with NOGL having 12 months to exercise the option to acquire for nominal consideration. No finder's fee was payable in respect of the Transaction.