Perth, May 25, 2006 AEST (ABN Newswire) - Aurora Oil and Gas Limited (ASX: AUT) is pleased to announce that it has received Credit Committee approval for a US$10 million loan facility from a major international bank.
Completion of this arrangement is subject to final documentation which is expected to be completed early in the next quarter.
The Loan Facility is secured against the proven reserves of the Company's interest in the Flour Bluff Gas Development Project located near Corpus Christi, Texas. The majority of funds are earmarked for the full development of Aurora's gas reserves at Flour Bluff but up to US$3.25 million would be available to the Company to apply to its other projects. More specific commercial details are currently subject to confidentiality.
Aurora Oil & Gas Executive Chairman Jon Stewart commented that "Completion of documentation of this Project Finance Facility will represent another significant advance for Aurora. Stage 2 development drilling at Flour Bluff, expected to commence in September, and all subsequent development activities will be fully financed. Aurora would be able to apply its capital resources, some of the debt funds and a growing cashflow towards taking its other projects to similar status whereupon project debt could be introduced."
Contact
Alex Neuling
Company Secretary
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