Hydrocarb Energy Corporation Closes Funding for Production Enhancement Program
HOUSTON--(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.
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.