PA Resources Secures Bond Loan

PA Resources has decided to issue a new bond loan of US $100 million (corresponding to approx. SEK 717.2 million). The issue was oversubscribed from both Norwegian and international investors.

The new bonds are issued by Didon Tunisia Pty Ltd with an unconditional guarantee from PA Resources AB. The bonds will be secured by a first priority pledge over all outstanding shares in Didon Tunisia Pty Ltd, which subsidiary Didon Pty Limited Tunisian Branch is the owner of the PA Resources Group's interest in the fields Didon, Zarat and Elyssa in Tunisia.

The bonds will carry a coupon of 3 months Libor + 3.50%. The loan will have installments of US $10 million in 2009, US $10 million in 2010 and US $10 million in 2011, while the remaining loan amount of US $70 million will mature in March 2012.

The net proceeds from the loan will be used for refinancing of the existing agreement with ABC International Bank Plc, as well as to finance planned activities at the Didon-, Zarat- and Elyssa-fields.

PA Resources is very pleased with the reception the bond loan has received so far in the capital markets. The Group's ability to continue its expansion has now been strengthened further, says Ulrik Jansson, President and CEO at PA Resources.

The bond issue is subject to finalization of loan documentation. Settlement is expected to take place on or around March 13, 2007.

Pareto Securities ASA is given the mandate as manager of the new bond issue.

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