Freedom Oil and Gas Ltd. has closed on $10 million of financing with Ramas Capital Management LLC, with the ability to expand to $20 million within five months if certain well performance is met. The funds will be used to finance the ongoing development of Freedom's Eagle Ford acreage, including drilling, completion, land acquisition, and associated activities.
Commenting on the Ramas Capital transaction, Executive Chairman and Chief Executive Officer, J. Michael Yeager, said, "We are pleased to partner with Ramas Capital as we initiate the second phase of our Eagle Ford development plan. This financing positions Freedom to continue developing our acreage without delay and provides a flexible financial bridge to meet the requirements to activate the much larger and lower cost reserves based lending facility we established with Wells Fargo. The Wells Fargo facility is intended to provide capital for ongoing drilling once adequate production levels are reached. With this support from Ramas Capital, we plan to drill and complete two to four additional horizontal wells to more fully test our Dimmit County, TX acreage in the Eagle Ford Shale formation and grow our production to meet the Wells Fargo criteria. This is in addition to our first two Eagle Ford wells which have already been drilled and completed, and should begin flow-back and production within the next few weeks."
Freedom Oil and Gas Ltd. is a development stage company striving to build a growing, investment grade oil and gas company. The company continues to acquire undeveloped acreage in the liquids rich area of the Eagle Ford Shale in South Texas, in the United States.