Press release from PR Newswire
American Natural Energy Corporation Announces Unsecured Convertible Debentures Financing and Appointment of Directors
Monday, August 13, 2012
TULSA, Okla., Aug. 13, 2012 /PRNewswire/ -- American Natural Energy Corporation ("ANEC") (TSX Venture:ANR.U) announced that it has completed an Unsecured Convertible Debenture financing previously announced on July 3, 2012 with a private investment group in the amount of US$2 million. Under the terms of the agreement an additional $1 million may be sold at the discretion of the investor group. The debenture is due and payable in two years. Interest is payable quarterly at an equivalent rate of 12% per annum in either cash or common shares, and the debenture is convertible into shares of ANEC common stock at a conversion rate of US$0.10 per share. The financing is to be used for the drilling and completion of wells included in ANEC's inventory of Proved Undeveloped reserves ("PUD"). ANEC's PUDs include 11 locations on its Bayou Couba project in St. Charles Parish, Louisiana with potential reserves in excess of 2 million net barrels of oil.
Warrants, expiring in two years were also be issued and will be exercisable into 20 million common shares at US$0.23 per share. The warrants are non-transferable.
Holdings by the investment group, including conversion of shares and exercise of warrants is limited to 19.9% of the outstanding shares of ANEC without the approval of a majority of the outstanding existing shareholders.
In connection with the closing of the debentures described above ANEC has also accepted the resignation of Mr. Bennett Shelton and Mr. William Grant as directors effective immediately and as representatives of the private investment group Mr. Douglas B. MacGregor, Mr. James L. Ferraro and Mr. William Yuan have been appointed as directors. Detailed information about each of these gentlemen can be found at www.annrg.com.
ANEC is a Tulsa, Oklahoma based independent exploration and production company with operations in St. Charles Parish, Louisiana. For further information please contact Michael Paulk, CEO at 918-481-1440 or Steven P. Ensz, CFO at 281-367-5588.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This Press Release may contain statements which constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, including statements regarding the plans, intentions, beliefs and current expectations of ANEC, its directors, or its officers with respect to the future business, well drilling and operating activities and performance of ANEC. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The actual results and outcome of events may differ materially from those in the forward-looking statements as a result of various factors. The levels of and fluctuations in the prices for natural gas and oil and the demand for those commodities, the outcome of ANEC's development and exploration activities, including the success of its current and proposed well drilling activities and the availability of capital to pursue those activities could affect ANEC and its future prospects. Important additional factors that could cause such differences are described in ANEC's periodic reports and other filings made with the Securities and Exchange Commission and may be viewed at the Commission's Website at http://www.sec.gov.
SOURCE American Natural Energy Corporation