Armada Oil closes asset reallocation financing transaction

Armada Oil Inc.

Armada Oil Inc. (OTCBB:AOIL) has closed an asset reallocation financing transaction with Gulfstar Resources LLC, a private energy investment group. This transaction will allow the company to pursue additional producing property acquisitions, as well as additional drilling and development on its current multiple acreage positions in an effort to increase production and reserves. The transaction has no debt component and is non-dilutive, with no stock or warrants being issued.

The package includes a total potential funding commitment of $17,500,000 in three tranches, with a firm initial commitment of $12,950,000. Tranche A, in the amount of $6,250,000, which has been funded, is earmarked for the acceleration of development in the Armada’s south Louisiana operating area. Tranche B, in the amount of $6,700,000, is expected to be funded on or prior to March 31, 2014, and is planned to be used for the acquisition of a producing property and/or for additional drilling in Oklahoma. Tranche C, in the amount of $4,550,000, is at Gulfstar’s discretion and, if funded, is slated to be used to drill an initial horizontal Niobrara well in the company’s Anadarko farm-out acreage position in Carbon County, Wyoming.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...