\Westside Energy Corporation (AMEX:WHT) , an oil and gas company with operations focused on the acquisition, exploration, and development of natural gas in the Barnett Shale play in North Texas, has recently announced that its Board of Directors has approved a 2007 project budget of $15 million.
Westside has also closed a $25 million senior secured loan from four entities managed by Wellington Management Company, LLP to replace the credit facility previously provided to Westside by GasRock Capital LLC. Two of the lending entities are among the largest institutional holders of Westside’s outstanding shares.
The full $25 million provided under the loan has been advanced and approximately $12 million was used to retire the amount owing to GasRock. Westside expects to use the remaining proceeds from this loan to fund its 2007 budget and for general corporate purposes.
The 2007 project budget, primarily for activities in Hill County, is allocated as follows ($ millions):
* Drilling: $12 8 gross / 3.5 net wells.
* Leasehold: 2 Acreage additions and renewals.
* Seismic: 1 3D data over 12,000 gross acres.
* Total $15
Key terms of the new senior secured term loan are as follows:
* Principal Amount: $25 million.
* Term: Two years.
* Interest Rate: 10% per annum.
* Other Consideration: 3% overriding royalty interest in Southeast and
Southwest Program properties (proportionately
reduced to WHT’s working interest).
* Collateral: Southeast and Southwest Program properties.
* Drawdown: 100% at closing.
* Use: Development activities; loan retirement; general
* Amortization: None. Payoff at end of term.
Additional details regarding this new loan will be included in a Securities and Exchange Commission filing on Form 8K.
Douglas G. Manner, Westside’s Chief Executive Officer, said, “We have secured the endorsement of our Board of Directors for an aggressive development program in Hill County to follow up on our recent success in drilling and completing the Primula #1H well. The new Loan Facility secures access to committed funds which will allow the Company to make multi-well commitments for equipment and services to cost effectively pursue the approved 2007 budget program.”
About Westside Energy Corporation
Dallas-based Westside Energy is an oil and gas company focused on exploiting its significant acreage position in the prolific Barnett Shale trend in North Texas. For more information about Westside Energy, please visit the Company’s website: www.westsideenergy.com.