Arabella Exploration Inc. (OTC: AXPLF) entered into a $45 million senior secured note facility with a New York-based investor, the company said Sept. 4.
An initial amount of $16 million in notes under the facility was sold to the investor Sept. 2. This will reduce payables and provide working capital for well completions in the southern Delaware portion of the Permian Basin, the company added.
In the next 60 days, an additional $5 million of notes is expected to be sold, Arabella said. The remainder will be sold in tranches to the investor through Sept. 2, 2015, the company added.
Jett Capital Advisors advised Arabella on the transaction, the company said.
Share purchase warrants, for 1.3 million common shares at $5 each, were issued alongside the notes, the company said. "We are excited to have completed the initial sale of our senior secured notes and to have access to additional development capital," said Jason Hoisager, CEO.
"It was a pleasure working with the investor and Jett Capital Advisors on this transaction. The funds will allow us to continue in executing our base drilling operations plan into next year. We will finish completion of the Woods #2H well and announce results as soon as possible as we continue on our drilling schedule," he added.
Arabella Exploration Inc. is based in Midland, Texas.
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