Proteus Energy Corporation (“Proteus Energy”), today announced the closing of a $10 million secured line of credit with Platinum Partners Credit Opportunities Fund (“PPCO”), a private investment fund managed by New York based Platinum Partners. Funds will be used for the drilling of new wells at Proteus’ Northwest Lost Hills oil and gas field in Kern County, California and for its share of the costs related to continued development of the Lynch Canyon heavy oil field in Monterey County, California. PPCO also received equity in Proteus in the form of preferred shares.
Proteus Energy’s proved developed and undeveloped reserves at December 31, 2011 were 1,965,135 barrels of oil equivalent (BOE), of which 199,847 BOE were proved developed reserves. Of these amounts, proved reserves at Northwest Lost Hills were 1,930,313 BOE, of which 175,740 BOE were proved developed reserves. Proteus Energy has owned and operated the Northwest Lost Hills properties since January 2008.
Ari Hirt, Portfolio Manager of PPCO, said: “We are excited about the prospect of funding the growth of Proteus Energy and the investment opportunity afforded. We are particularly impressed with the quality and experience of Proteus Energy’ management and board of directors, and we look forward to a long and productive partnership.”
Proteus Energy’s CEO, Bennett Yankowitz, commented: “By giving Proteus Energy access to capital to develop our reserves at Northwest Lost Hills and Lynch Canyon, the PPCO financing will enable us to begin to realize the value of our undeveloped reserves, which should accelerate our revenue and earnings growth beginning in the second quarter of 2012. Moreover, with PPCO’s acquisition of a preferred stock position, we gain a strong and sophisticated financial partner to support the continued growth of our company. In addition to the development of our existing properties, we are also looking to expand our operations and on-shore oil and gas property holdings in California and other areas of the United States.”
Impact Capital Advisors, LLC (Los Angeles) and PacificWave Partners Limited (Copenhagen) are acting as financial advisors to Proteus Energy.
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