Microsoft Word - 09072012_Elk_ASX_Announcement_EORGAS_LLC.docx
ABN 38 112 566 499
1 July 2016
GRIEVE PROJECT UPDATE
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Financier has received credit approval for US$58 million loan facility
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Loan financing closing targeted for the second half of July 2016
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Grieve JV restructure execution scheduled for 7 July 2016
Credit approval
Elk Petroleum Ltd (ASX: ELK) ("Elk" or the "Company") is pleased to advise that the mandated lender for the Grieve CO2 Enhanced Oil Recovery (EOR) Project ("Grieve Project") Joint Venture ("Grieve JV"), Benefit Street Partners L.L.C. ("Benefit Street Partners") has now received credit approval for the US$58 million loan facility.
Closing of the proposed senior debt facility is subject to definitive legal documentation and certain other conditions precedent, and is targeted for the second half of July 2016.
Extension of JV restructure completion date
As previously notified on 27 May 2016, Elk has executed a Confirmation and Extension Agreement with Denbury Onshore LLC ("Denbury") pursuant to which the form of key definitive transaction documentation in relation to restructuring of the Grieve Project has been agreed.
To accommodate finalisation of key outstanding agreements in relation to the Grieve JV restructure, Elk and Denbury have today executed a further Extension Agreement with a revised deadline for execution of final documentation by 7 July 2016.
Elk Managing Director, Mr. Lingo commented: "Benefit Street Partners having confirmed receipt of credit approval for the proposed senior secured loan facility, and significant progress toward finalisation of agreements with Denbury including a revised execution date of 7th July 2016 are both key steps towards finalisation of the Grieve JV restructure".
Elk is being advised by Miro Advisors and Norton Rose Fulbright for the senior loan facility and Grieve JV restructure.
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For further information, please contact:
Brad Lingo
Managing Director/CEO P: +61 2 9093 5400
E: [email protected]
ABOUT ELK PETROLEUM
Elk Petroleum Limited (ASX: ELK) is an oil and gas company specialising in Enhanced Oil Recovery (EOR), with assets located in one of the richest onshore oil regions of the USA, the Rocky Mountains. Listed on the ASX in 2005, Elk's strategy is focused on applying proven EOR technologies to mature oil fields, which significantly de-risks the Company's strategy of finding and exploiting oil field reserves. Leveraging proven EOR technology and Company expertise and experience, Elk is currentlydeveloping the Grieve oil field in Wyoming (Elk - 35% WI) and is planning for a CO2-basedEOR project at the Singleton oil field in Nebraska (Elk - 100% WI & operator).