Doxa Energy US Inc., a subsidiary of Doxa Energy Ltd. (TSX-V: DXA) announced that it has entered into a revolving loan agreement with Meridian Bank Texas. The lender agrees to make a revolving loan in the face amount of $5 million to Doxa Energy US Inc., subject to the terms and conditions set forth in the loan agreement.
John D. Harvison, president and CEO of Doxa Energy Ltd., commented, "This loan facility will provide Doxa with the necessary capital for continued, uninterrupted development of its interests in ongoing projects, including the Mississippian Oil play in Oklahoma and the Sarco Creek project in South Texas. In addition, the transaction reflects our confidence that Doxa will successfully build asset value and deliver attractive returns to its shareholders."
Doxa will utilize a portion of this loan facility to repurchase 10% interest in the Sarco Creek project, South Texas, thereby returning Doxa''s interest to 30%.