The Commitment Letter contemplates a roll-in to a substantially larger facility within 120 days of closing, which is when the Facility matures. In conjunction with the Facility, Petrosearch will issue 2 million warrants to Macquarie at a premium to market over the previous 30 calendar day trading prices, of which 1 million of those warrants may expire in 120 days, depending upon future events.
Commenting on the Macquarie commitment, Richard Dole, Petrosearch CEO stated, "We are pleased to have the support of a quality institution the caliber of Macquarie Bank. The Facility addresses our immediate needs for the Barnett project. As we work with Macquarie on our longer term capital needs for 2007 and beyond, we are also advancing discussions with alternative sources relative to various types of capital."
Macquarie Bank Ltd. is not licensed to conduct banking business in the United States. The Facility will be arranged through the Bank's representative office in Houston.
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