Viking Executes Term Sheet for $5M Credit Facility
NEW YORK, NY -- (Marketwired) -- 06/08/15 -- Viking Investments Group, Inc. ("Viking") (OTCQB: VKIN) is pleased to announce it has executed a Term Sheet with a privately owned fund management group (the "Lender") experienced in providing financing to companies within the oil and gas sector.
The Term Sheet contemplates the Lender providing Viking with a $5M Senior Secured Debenture Facility, with an initial advance of $1.2M. The financing proceeds, provided the transaction closes, will be used to, among other things, place the second well within the Joffre D3 B Pool (the "Joffre Project") on production.
The Term Sheet is non-binding and any formal transaction between Viking and the Lender is subject to the parties executing a definitive loan agreement and other security documentation.
The Joffre Project, in which Viking has a 50% working interest, is located in Red Deer, Alberta and consists of 4 previously suspended oil wells and 1 suspended water injection well. As previously announced, Viking and Tanager Energy Inc. ("Tanager"), joint venture operator of the Joffre Project, intend to mobilize and reactivate each well sequentially. The first well in the project was placed on production on April 1st, 2015. After 5 days of anticipated monitoring and operating facility adjustments, the well produced at a rate of 118barrels of oil per day and 250 mcf of natural gas, totaling 160 BOE/D, without a pump jack. To preserve the longevity of the well and sustain consistent production over an extended period Tanager and Viking stopped production in order to install a pump jack on the well which is expected to be completed before the end of June, 2015.
Upon completion of the financing contemplated above, Viking and Tanager intend to proceed with the work necessary to reactivate the second of the remaining oil wells in the Joffre project. The second well is expected to be on production in August, 2015. Other wells will be mobilized and reactivated sequentially.
Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking's primary focus is directed toward evaluating and completing investments in North America, mainly in the Energy sector and other selective sectors, with appropriate diversification and balance between each division. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.
BOE Presentation. References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
For additional information please contact:
James A. Doris
President & C.E.O.
Viking Investments Group, Inc.
1330 Avenue of the Americas, Suite 23A
New York, NY 10019
Source: Viking Investments Group, Inc.
Released June 8, 2015