PEC Prometheus Regs

RNS Number:5425S
Prometheus Energy Co
17 April 2008




NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND, THE
REPUBLIC OF SOUTH AFRICA OR JAPAN.


Neither this announcement nor any copy of it may be taken, transmitted or
distributed, directly or indirectly, in or into the United States, Canada,
Australia, the Republic of Ireland, the Republic of South Africa or Japan. Any
failure to comply with this restriction may constitute a violation of United
States, Canadian, Australian, Republic of South Africa, Republic of Ireland or
Japanese securities laws.


                           Prometheus Energy Company
                        ("Prometheus" or the "Company")

            Prometheus raises $3.1 million in Convertible Debentures
                        to Support Working Capital Needs


     Update on Operations at Bowerman and Lisbon LNG Production Facilities



17 April 2008


The Board of Prometheus, the alternative and renewable fuel company, announces
today that the Company has entered into a convertible note purchase agreement
with Black River CEI Subsidiary 4 Ltd., a fund managed by Black River Asset
Management LLC, a global asset management company ("Black River").

The $3,100,000 secured convertible debentures ("Debentures") were issued at par
and are convertible into common shares ("Common Shares") or if the Company
raises additional capital into a new series of preferred stock having such
rights and preferences as may be determined by the Board (the "Preferred
Shares").  The conversion price is $0.32 (16 pence equivalent) per share.


The interest payable on the Debentures is 15 per cent per annum. The term of the
Debentures is five months. The Debentures may be redeemed at any time upon 5
trading days notice at a price which provides an internal rate of return to
Black River of 30 per cent (including paid and accrued interest). Upon notice of
early redemption, Black River may exercise its conversion rights.

The proceeds of the issue will be used for general corporate purposes and will
be drawn down based on milestones agreed between Black River and the Company.
The proceeds are anticipated to allow the Company to meet its working capital
requirements until mid June 2008. The Company continues to have discussions with
additional providers of financing. These discussions are at an early stage and
there can be no certainty that they will reach a successful conclusion.

Coinciding with the closing of the Debentures, two of the Company's other
secured lenders, El Cap I, LLC, and PEC III Holdings, LLC, have agreed to
certain changes in the relative priority of their liens, cancellation of all of
the Company's warrants held by them and to amend the terms of their loans such
that each of the loans will be convertible into Common Shares or, if the Company
raises additional capital into Preferred Shares at $0.32 (16 pence equivalent)
per share.

Kirt Montague, Prometheus' Chief Executive Officer, said: "We are pleased that
Black River has demonstrated its confidence in the opportunities available to
Prometheus with this additional funding."


Update on operations at Bowerman and the Lisbon LNG Production Facilities

The Bowerman LNG Production Facility in Orange County, California has been in
near continuous production since re-starting in early December of last year and
has delivered 21 tanker loads, or approximately 200,000 gallons of LNG, since
that time. The Bowerman plant is the first ever landfill gas-to-LNG production
facility in the world to produce commercially.

As announced previously, construction on the Lisbon LNG Production Facility at
the Encana USA Plant near Moab, Utah commenced on December 18, 2007 and has now
entered start-up and commissioning. The plant has produced over 30,000 gallons
of LNG since first production on 4 April 2008 and has shipped its first two
tanker loads of LNG. The Lisbon plant is designed to initially produce 12,000
gallons per day from residual gas, and will be augmented later this year to
produce a total of 22,000 gallons per day.


For further information, please contact:

Prometheus Energy Company                               +1 206 267 0800
Kirt Montague (Chief Executive Officer)

Jefferies International Limited                         +44 20 7029 8000
Toby Hayward
OIiver Griffiths

Cubitt Consulting                                       +44 20 7367 5100
Simon Brocklebank- Fowler
Michael Henman
Allison Reid


This press release does not constitute an offer for the sale of securities in
the United States. Prometheus' securities are restricted under United States
securities laws and may not be offered or sold in the United States absent a
registration statement or a valid exemption from registration.



Notes to Editors


Prometheus Energy Company is a public corporation with its shares traded on the
London Stock Exchange's AIM market. It is headquartered in Seattle, Washington.
Prometheus is a global alternative and renewable fuel company focused on the
idea of Enlighted EnergyTM where sustainable and cleaner fuel in the form of
liquid natural gas (LNG) is made from waste sources of methane produced close to
where it will be used. The Company is an emerging leader in integrating
small-scale purification and liquefaction systems from sources including
landfill gas, stranded gas wells and coalbed/coalmine methane. For more
information concerning Prometheus please contact the company at +1 206 267-0800
or visit www.Prometheus-Energy.com.


Black River Asset Management, an independently managed subsidiary of Cargill, is
a global asset management company with 12 offices in 10 countries and more than
20 years of experience with alternative investment strategies.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
AGRSFMFSWSASEFL

Prometheus Regs (LSE:PEC)
Historical Stock Chart
From May 2024 to Jun 2024

Prometheus Regs (LSE:PEC)
Historical Stock Chart
From Jun 2023 to Jun 2024