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PetroQuest Energy Announces $20 Million Subordinated Term Credit Facility LAFAYETTE, La., Nov. 7 /PRNewswire-FirstCall/ -- PetroQuest Energy,
Inc. (Nasdaq: PQUE
- News) today announced
it has secured a $20 million subordinated term credit facility from
Macquarie Americas Corp. ("Macquarie"). The facility carries an interest
rate of prime plus 5 1/2%, matures November 30, 2006, and is secured
by a second mortgage on substantially all of the Company's oil and
gas properties. The facility is available for advances at any time
until December 31, 2004 subject to the restrictive covenants of the
facility and Macquarie approval. At closing, Macquarie received warrants
to purchase 1,250,000 shares of PetroQuest common stock at an exercise
price of $2.30 per share. When cumulative advances under the facility
exceed $5,000,000, $10,000,000, and $15,000,000, Macquarie will receive
warrants to purchase an additional 250,000 shares, 500,000 shares
and 250,000 shares of PetroQuest common stock, respectively, at the
same exercise price.
PetroQuest intends to use advances under the facility towards funding its development plan which includes completion and facility costs, the cost of drilling development wells, and for other general corporate purposes. The facility contains certain restrictive financial and non-financial covenants, including a minimum current ratio, a minimum interest coverage ratio, a minimum adjusted present value ratio and a maximum general and administrative expense ratio, all as defined in the facility. PetroQuest Energy Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore. This press release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements. Source: PetroQuest Energy, Inc. Contact: PetroQuest Energy Inc. |
