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ERF Wireless Inc. (ERFB) Secures $3M in Financing to Expand Broadband Products/Services in North American Oil and Gas Sector

ERF Wireless, known throughout Texas, New Mexico, Oklahoma and Louisiana for delivering fast/reliable high-speed wireless and broadband solutions, recently reported a major step towards cementing and enhancing subsidiary Energy Broadband’s footprint in the major North American oil and gas exploration markets via entry into a binding commitment agreement for $3M in debt financing with Dakota Capital Fund LLC.

ERFB has been pumping out data over its largely 10/Mbps broadband networks for quite some time now and has garnered a solid user base; however, this move to bolster penetration into key oil and gas markets like the Ford Eagle Shale and the massive Bakken Shale up in North Dakota, by specifically providing wireless broadband coverage tailored to the industry’s needs/desires, is an aggressive, assertive move by the Company to lock down a superb niche with serious growth potential.

Dakota Capital is located in Sioux Falls, South Dakota and thus has a natural interest in regional development. Taking special interest in the roll-out of services, Dakota Capital was quite eager to become involved and views the financing as a sure means of allowing ERFB to rapidly bring overall service coverage to a new level.

The flurry of activity surrounding the Bakken makes this a good strategic move for ERFB and for Dakota Capital. As activity increases the demand, broadband services will just continue to skyrocket and initial efforts to roll-out services have already begun, prompted by the eagerness of both parties to move forward.

The agreement stipulates that a definitive funding agreement is to be produced for signing by Oct. 31, carrying an immediate $2M sum of available financing for acquisition of revenue producing assets. Dakota Capital retains the option for another $1M, within 90 days of signing the definitive agreement, under the same terms.

No prepayment penalty exists and financing secured via this line of credit has been obtained through certain ERFB assets. Additionally, terms of the agreement allow ERFB to pull everything up to the full amount at any time from the credit line during the two-year term, paying interest only on funds received.

Energy Broadband is poised and now capitalized to bring oil and gas drilling/production companies, as well as oilfield service companies, a robust package of cost-effective, real-time services and products to meet the dynamic needs of this complex industry. Energy Broadband is a perfect solution to expensive satellite VPN circuitry and allows operators to own their own high-speed, high-capacity infrastructure that enables real-time applications to be brought on board in a shared environment.

For more information on the agreement, or on ERF Wireless Inc., please visit the Company’s website at: erfwireless.com

For more information on ERFB subsidiary, Energy Broadband Inc., please visit their newly redesigned website at: energybroadband.com

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