/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
KELOWNA,
BC, Feb. 19, 2016 /CNW/
- Mr. Burkhard Franz, President
and CEO of Georox Resources Inc. ("Georox" or the
"Corporation") (GXR: TSX-V; OF6A:FRA) wishes to announce
developments with respect to the Corporation's financial
affairs.
Credit Facility Restructuring
Georox is pleased to announce that it has entered
into an agreement to restructure and consolidate its credit
facilities and will no longer be dealing with its primary
banker. Tallinn Capital, Georox' mezzanine financier, has
agreed to take over and consolidate Georox' credit facility of an
aggregate of approximately $4.5
million. The credit facility will be non-revolving for a
fixed term to April 30, 2018, requiring principal repayments
of $25,000 per month, increasing to
higher principal repayments depending on timing and a consistent
increase in the WTI oil price during the term of the
facility. In connection with the restructured credit
facility, Georox will pay Tallinn
certain fixed and variable fees and issue to Tallinn 1,000,000 Georox non-transferable
common purchase warrants, exercisable at price of $0.05 per warrant for a term of two years.
Tallinn will surrender warrants
previously issued to it in June 2015
in connection with its original renewed credit facility.
Georox believes that this restructured credit
facility will leave Georox with free cash flow, after debt service
and other costs, such that it will be able to initiate operations
on its properties with a view to improving production and financial
netbacks to the Corporation.
About Georox
The Corporation currently produces approximately
140 boepd of which 75% is light oil, 24% is heavy oil and 1% is
gas.
Production volumes are commonly expressed on a
barrel of oil equivalent ("BOE") basis whereby natural gas volumes
are converted at a ratio of six thousand cubic feet to one barrel
of oil. The intention is to convert oil and natural gas
measurement units into one basis for improved analysis of results
and comparisons with other industry participants. The term
BOE may be misleading, particularly if used in isolation. The
conversion ratio is based on an energy equivalent method and does
not represent an economic value equivalency at the
wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking
statements relating to the future operations of the Corporation and
other statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions.
All statements other than statements of historical fact, included
in this release, including, without limitation, statements
regarding future plans and objectives of the Corporation, are
forward looking statements that involve risks and
uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such
statements. More particularly, it contains forward-looking
statements concerning: (i) production (ii) timing and completion of
the Offering, and (iii) potential development opportunities
associated with the Corporation's properties.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the Units in
the United States. The Units (or
constituent securities) have not been and will not be registered
under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act") or any state securities laws and may
not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Georox Resources Inc.