Hydrocarb Energy Corporation Closes Funding for Production Enhancement Program
August 19 2014 - 9:00AM
Business Wire
Hydrocarb Energy Corporation (OTCQB:HECC) (“Hydrocarb” or the
“Company”) an oil and gas exploration and production company
headquartered in Houston, today announced it has closed a new
$5,500,000 term debt placement from lending entities managed by
Shadow Tree Capital Management LLC and Quintium Advisors LLC
(collectively, the “Lenders”).
The Lenders are providing senior secured notes to the Company
with a 2-year term. The initial notes were issued at a 12% original
issue discount resulting in an initial funded amount of $4,000,000,
and subject to certain conditions, Hydrocarb can receive an
additional $1,000,000 under the facility within the first twelve
months of closing. The proceeds of the new facility will be used
primarily to fund well work-overs and infrastructure improvements
of the Company’s Galveston Bay oil and gas producing assets.
Chuck Dommer, President and COO of Hydrocarb commented, “We are
excited about this financing because it will allow us to quickly
increase production from our assets in Galveston Bay. The resulting
cash flow will enable Hydrocarb to have increased flexibility in
its operations as a public company. We expect to commence work on
our Galveston Bay assets this fall and hope to see the impact of
this investment before year-end.”
Roth Capital Partners acted as financial advisor to Hydrocarb in
the transaction.
About Hydrocarb Energy
Hydrocarb Energy Corporation is a publicly-traded oil and gas
company with producing assets in Texas. The Company also has
interests in certain under-explored oil and gas projects in
emerging, highly prospective regions of the world.
For further information: www.hydrocarb.com.
The Company asks its shareholders to read its form 8k filed
with the Securities and Exchange Commission regarding this
financing.
Forward-looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, which contain words such as "expect,"
"believe" or "plan," by their nature address matters that are, to
different degrees, uncertain. These uncertainties may cause actual
future events to be materially different than those expressed in
our forward-looking statements. We do not undertake to update our
forward-looking statements.
Hydrocarb Energy Corp.Chuck Dommer, 1
713-970-1590President/COOinfo@hydrocarb.com