Dome’s bank in the US has delivered a term sheet, offering to fully finance this drilling program, and also partly pay the Company’s bridge loans. Dome’s Illinois Basin assets are currently not included in the bank facility, but financed by the previously announced bridge loans. The production results, dating back to early November, have proved values to support a bank loan, to continue drilling and repay other debt. The Company appreciates the support from their US bank, and hope to close the suggested terms within short.
Dome intends to call for an extraordinary shareholders meeting, to allow an offer to debtholders to set-off their debt against equity in the company in form of new shares and warrants. Petrus AS, Range Ventures LLC, Middelborg AS and Kvalitena AB have agreed to participate in the issue of shares and warrants. Shares will be issued for set off of debts to an estimated value of MSEK 87, at current forex change rate, and the preliminary subscription price is SEK 0.65 per new share. Each subscribed new share entitles the subscriber one warrant. The warrants may be exercised up to August 30, 2019, and entitle the holder to subscribe for one share per warrant at a subscription price of SEK 0.75 per share. However, the conversion terms and the final offer are connected to the final financing terms from the bank and will be presented together with the notice of the extraordinary shareholders meeting.
Paul Morch, CEO: “We are pleased to continue our drilling program in the Illinois Basin. The recently drilled four wells are all producing commercial and economic volumes. We used different volumes of frac fluid on each well, and the reservoir seems to have some effect on the upsized volumes. We will therefore try to use larger fracs on all six wells we now aim to drill. When we started drilling the first four wells, financed by the bridge loans, we aimed to have a financier offering banking terms, once we were ready to refinance. We have now been offered these terms by our existing bank, which is a good proof of not only the quality of these assets, but also of the solid relationship we have with our financier. This six wells program, which we are about to commence, could provide cash flow enough to allow a continuous drilling program over the next few years. This program together with a financial model and previous drilling results will be presented at the extra general meeting.”
For further information, please contact:
Phone: +1 713 385 4104
E-mail: [email protected]
This information is the kind of information that Dome Energy AB (publ) is obliged to publicize according to EU Market Abuse Regulations (MAR). The information was publicized, by the above contact person December 29, 2017, 08.30 CET.
About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on the Nasdaq First North exchange in Sweden (Ticker: DOME (http://www.nasdaq.com/symbol/els/dome)). Mangold Fondkommission AB, phone: +46 8 503 01 550, is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.