Magnum Hunter Closes Credit Facility for Eureka Hunter Pipeline

- Magnum Hunter Closes Credit Facility for Eureka Hunter Pipeline

Wednesday, August 17, 2011
Magnum Hunter Resources Corp.

Magnum Hunter's wholly-owned subsidiary, Eureka Hunter Pipeline, has closed a new credit facility totaling $150 million. The Eureka Hunter Finance Facility is comprised of two tranches: (i) a revolving credit facility in the aggregate principal amount of up to $100 million secured by a first lien on the assets of Eureka Hunter Pipeline ("Revolver") with an initial committed amount of $25 million; and (ii) a $50 million term loan secured by a second lien on such assets ("Term Loan"). All of the Term Loan must be drawn before any of the Revolver is drawn and $31 million of the Term Loan was drawn at closing yesterday. Both the Revolver and the Term Loan are "non-recourse" to the parent company, Magnum Hunter.

The proceeds from the Revolver and the Term Loan will be used to finance capital expenditures for the construction of the Eureka Hunter Pipeline system located in northern West Virginia and Ohio. Advances under the Term Loan will be limited to 60% of the project's "Total Capital" including equity and debt invested. As of August 15, 2011, Magnum Hunter has invested approximately $52 million of equity capital in the Eureka Hunter Pipeline project.

In addition, Magnum Hunter has received $21 million of net proceeds from the Term Loan Closing to repay existing indebtedness. As of August 16, 2011, Magnum Hunter had total liquidity including cash and availability under its credit facilities, including the Term Loan, of approximately $75 million, of which $55 million is available to fund its upstream capital program focused on the Company's high growth resource plays.

The applicable interest rate margin of the Revolver ranges from LIBOR plus 2.25% to LIBOR plus 3.50%. The Term Loan accrues interest at a rate of 12.50% per annum; of which 2.75% is payable in cash or Magnum Hunter restricted common stock at the sole option of Magnum Hunter. The Revolver and the Term Loan contain other terms and conditions customary for financings of this type. The Revolver has a maturity of five years from date of closing and the Term Loan has a maturity of seven years from date of closing. SunTrust Robinson Humphrey, Inc. has served as the "Lead Arranger" and SunTrust Bank will serve as "Administrative Agent" for the Revolver. PennantPark Investment Corporation is the "Lender" for the Term Loan.

Management Comments

Mr. Ronald D. Ormand, Executive Vice President and Chief Financial Officer of Magnum Hunter, commented, "The closing of the Eureka Hunter Finance Facility for the Eureka Hunter midstream assets completes one of our primary financial goals for fiscal year 2011. Eureka Hunter Pipeline now has its own primary source of financing, provided on a non-recourse basis to Magnum Hunter, and the capital necessary to complete construction and expand operations of the pipeline through fiscal year 2012. In addition, with the return of $21 million in capital from the Eureka Hunter Finance Facility, Magnum Hunter has further increased its overall financial liquidity to in excess of $75 million. The additional liquidity provides Magnum Hunter with the necessary capital to fund the Company's capital expenditure plan through the end of fiscal year 2011 and into fiscal year 2012."

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Husky Closes $1B Common Share Offering

- Husky Closes $1B Common Share Offering

Wednesday, June 29, 2011
Husky Energy Inc.

Husky has closed its previously announced $1 billion bought-deal public offering of common shares (the "Public Offering") and its $200 million concurrent private placement (the "Private Placement"). The Company has received total gross proceeds of approximately $1.2 billion from the combined Public Offering and Private Placement.

Pursuant to the Public Offering, the Company has issued, through a syndicate of underwriters led by RBC Capital Markets, Goldman Sachs Canada Inc., HSBC Securities (Canada) Inc. and J.P. Morgan Securities Canada Inc., a total of 36,968,500 common shares in the capital of Husky at a price of $27.05 per share for total gross proceeds of approximately $1 billion. The Public Offering was conducted under the Company's universal base shelf prospectus filed November 26, 2010 with the securities regulatory authorities in all provinces of Canada and the Company's universal base shelf prospectus filed June 13, 2011 with the U.S. Securities and Exchange Commission.

Pursuant to the Private Placement, the Company's principal shareholders, L.F. Investments (Barbados) Limited and Hutchison Whampoa Luxembourg Holdings S.a.r.l. have been issued a combined total of 7,393,714 common shares at the same price as the Public Offering, for total gross proceeds of approximately $200 million.

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El Paso Closes Revolving Credit Facilities

- El Paso Closes Revolving Credit Facilities

Friday, June 03, 2011
El Paso Corp.

El Paso Corp. has amended and restated its revolving credit facility and renewed the El Paso Exploration & Production Company (EPEP) revolving credit facility, both of which were set to mature in 2012.

Changes to the El Paso Corporation facility include the extension of maturity to 2016, the reduction of available commitments from $1.5 billion to $1.25 billion, and credit terms which now include more flexibility on collateral support and El Paso Corporation's general partnership interest in EPB as collateral. The EP facility also now provides for an elimination of collateral support upon the loans achieving investment grade status. There were no material changes to the covenant and collateral package supporting the $1.0 billion borrowing base facility for EPEP.

The EP facility was financed through a syndication of 23 financial institutions. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. acted as coordinators for the EP Facility. The EPEP facility was financed through a syndication of 31 financial institutions. BNP Paribas Securities Corp. and Scotia Capital acted as coordinators for the EPEP facility.

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Vast Exploration Closes Putumayo Farm-Out

- Vast Exploration Closes Putumayo Farm-Out

Tuesday, May 17, 2011
Vast Exploration Inc.

Vast Exploration has closed its previously announced farm-out of a 90% interest in the Putumayo Basin of Colombia Block (the "Block") to a wholly-owned subsidiary of Sagres Energy Inc. ("Sagres") in consideration for the Company retaining a 10% carried interest during the first exploration phase (the "Carried Interest").

The Block has an area of 148,000 acres (gross) and is located in the Putumayo Basin of Colombia. The Block offers exploration upside on a structural trend with existing discoveries, and is situated strategically between two blocks (CAG-6 and PUT-09) awarded to Pacific Rubiales and Talisman Energy, respectively. The Block carries a royalty of 7% payable to the Government of Colombia in addition to the basic royalty scheme established under Colombia Law, being 8% for up to 5,000 bopd and increasing to 25% for a 600,000 bopd field. All other terms of the contract are standard to the model Colombian E&P Contract. Sagres will have an option to acquire the Company's Carried Interest in the Block over the next twelve months at a price to be mutually agreed.

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Paxton Closes on Vermilion 179 Acquisition

Paxton Closes on Vermilion 179 Acquisition

Tuesday, May 10, 2011
Paxton Energy, Inc.

Paxton Energy, Inc., an energy turnaround company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, announced that on Friday, May 6, 2011, Paxton closed on the agreement with Montecito Offshore, LLC ("Montecito") of Louisiana, whereby Paxton acquired a 70% working interest in 546.875 acres in the Vermilion 179 (VM 179) track for $1,500,000 cash, a $500,000 subordinated note and the issuance of 15 million shares of Paxton common stock.

Located in the shallow waters of the Gulf of Mexico offshore from Louisiana, VM 179 is adjacent to Exxon's VM 164 #A9 well. Based on the Montecito Independent Reserve report by James E. Hubbard, dated March 29, 2010, Proven and Probable reserves have a PV-10 value of $92,000,000 at $85 per barrel oil and $4 per mcf gas.

"The Vermilion 179 acquisition follows the company's strategy of acquiring producing properties with proved and probable reserves," said Charles F. Volk, Jr., Chairman of Paxton.

Paxton engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Paxton is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Paxton was founded in 2004 and is based in Stateline, Nevada.

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Samson O&G Closes Asset Sale, Sets Frac Date for Earl Well

Samson O&G Closes Asset Sale, Sets Frac Date for Earl Well

Thursday, March 31, 2011
Samson O&G Ltd.

Samson O&G has closed its previously announced sale of gas assets in the Jonah and Lookout Wash Fields in Green River Basin, Wyoming for $6.3 million to a group of private buyers, with an effective date of January 1, 2011. Samson's cash balance following this transaction stands at US $73.3 million.

Samson has also been advised that a frac date has been set for the Earl #1-13H well and it is expected that frac operations will commence Monday April 4th. Earl #1-13H was previously drilled to a measured total depth of 17,342 feet, and a 5,700 foot liner set in the horizontal section. This horizontal section will be fracced with 20 stages and the treatment is expected to place 2.3 million pounds of proppant. This operation will take approximately five days.

Morumbi Closes Rockwell Acquisition

Morumbi Closes Rockwell Acquisition

Friday, March 25, 2011
Morumbi O&G Inc.

Morumbi has acquired all of the issued and outstanding share capital of Rockwell Exploration. In connection with the acquisition of Rockwell, Morumbi has paid cash consideration of US $582,000 in settlement of certain debts of Rockwell and has also issued an aggregate of 4,000,000 common shares of Morumbi to Rockwell's ten shareholders. Rockwell's business to date has been focused on sourcing and developing exploration opportunities in Papua New Guinea ("PNG") with a focus on oil and gas exploration opportunities.

As a part of the acquisition, Morumbi has also entered into a consulting agreement with Mr. Lindsay Semple providing for Mr. Semple's services on an exclusive basis to build an exploration platform for Morumbi in PNG in order to take advantage of the opportunities management believes to be present there. Morumbi has also entered into a consulting agreement with Mr. Philip Rali a PNG national and an expert in Melanesian customs, who has worked as a team with Mr. Semple for the past 13 years focusing on the acquisition and development of oil and gas properties. Of the 4,000,000 Morumbi common shares issued in connection with the acquisition, 1,800,000 are being held in escrow and will be released in three equal tranches over a period of 18 months.

Tom Loch the President of Morumbi, "We view this as an opportunity to participate in one of the most attractive under explored resource areas in the world today. PNG is the home to some of the world's great mines including Porgera, OK Tedi, and Lihir and the recently announced 35 million ounce equivalent gold/copper/silver resource at Wafi-Golpu by Harmony Gold Mining Limited. Further, Exxon Mobil's $15 billion liquefied natural gas project currently under construction in the highlands is set to commercialize extensive stranded natural gas reserves. PNG is a stable Commonwealth country with attractive fiscal resource policies."