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WESTPORT, Conn.--(BUSINESS WIRE)--
The American Energy Group, Ltd. (AEGG) announced today that it has entered into a loan transaction with an institutional investor for the borrowing of $350,000. The funds will be used solely for the required cost advance required by the International Chamber of Commerce (ICC) tribunal in connection with the scheduled February 17, 2014 arbitration final hearing in which the Company’s claims against Hycarbex American Energy, Inc., Hycarbex Asia Pte. Ltd. and Hydro Tur (Energy) Ltd. will be adjudicated. The terms of the loan are an eighteen month term, an interest rate of 5.0% per annum and debt reduction payments prior to maturity only out of 25% of any proceeds of hydrocarbon production received by the Company, any ICC refunds, or any lump sum settlement payments from any participant. The loan is secured by a first lien on the Company’s non-producing Texas oil and gas interests. The loan also includes the issuance to the lender of 2.33 million warrants to purchase the Company’s common stock at $0.15 per share for twenty four months.
This news release contains forward-looking statements, including estimated time lines for future events. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, including potential production rates and potential reserves, which estimates are unproven and not based upon actual production data or historical facts. Forward-looking statements are subject to uncertainties and risks including, but not limited to, economic conditions, drilling risks and actual operating conditions and results, deviation in costs of critical equipment and services, deviation in production decline rates, the impact of competition and commodity pricing, and domestic and foreign governmental regulation and approvals.
All forward-looking statements in this disclosure, whether made by, or on behalf of the Company or by or on behalf of the project operator, are expressly qualified by the above cautionary statements and any other cautionary statements which accompany the forward-looking statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
For further information contact Pierce Onthank, President and CEO at (203) 222-7315 or [email protected]
Pierce Onthank, (203) 222-7315
President and CEO