Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Transeuro Energy Says Conditions For Povorotnoye Funding Close To Being Met 0 comments
    May 10, 2013 3:24 PM

    Transeuro Energy Corp. (CVE:TSU) shares were running higher Friday after it said that its partner Aleator Energy (ASX:AWD) completed a $2.7 million financing that will allow that company to meet most of the conditions of a US$20 million loan to support the drilling obligations under a farm-in deal between the two parties on the Povorotnoye gas field in Crimea, Ukraine.

    The funds raised by the placement will allow Aleator to satisfy two of the conditions under the $20 million loan agreement announced in late March - that is to have net available cash of at least $1.5 million at the date of the first drawdown, and to pay all expenses and legal fees prior to the drawdown.

    The remaining condition, to execute and register as necessary all finance and security documentation, is currently bein taken care of, and is expected to wrap up shortly, Transeuro said in a release Friday.

    As a result, the first tranche of the loan of US$10 million is anticipated to be drawn down immediately afterward.

    Transeuro Energy is a junior oil and gas exploration and development company with properties in Canada and in Ukraine.

    It has retained a 10.8 percent interest in the joint activity agreement to develop the Povorotnoye gas field. Under the terms of the farm-in deal, the company will receive US$500,000 upon spudding of the POV 105 well.

    Aside from being used for the POV 105 well, the $20 million in funds will also be allocated for the provision of a pipeline and plant to process and delivery anticipated gas and condensate when the well is completed and prepared for production.

    Shares of Transeuro were up by one penny to 6 cents on the TSX Venture on Friday.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.