CALGARY – Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) is pleased to announce that it has entered into an Agreement with the Company’s institutional lender (the “Lender”) to extend the expiration of its 2nd Lien Facility from December 31, 2019 to March 31, 2020. In addition, the Lender has agreed to advance funding of $4.5 MM CAD under the 2nd Lien Facility. The capital proceeds will be used to fund oil field development expenditures associated with the Company’s Barron Flats Shannon Unit (SSRU) in Converse County, Wyoming.
Glenn Dawson, President and Chief Execuitve Officer of Cuda, stated: “The extension and expansion of the 2nd Lien Facility speaks to the confidence in our asset in the Powder River Basin and our progress to advance the miscible gas-flood program. We look forward to updating our stakeholders on field-level results of the program in December 2019.
Under the Agreement, the Company will issue 885,000 Warrants to the Lender at an exercise price of $0.45 cents for a period of 12 months (subject to TSX.V approval).
About Cuda Oil and Gas Inc.
Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil in Wyoming and Alberta properties. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.