PA Resources Closes $200 Million Bond Issue

The oil and gas company PA Resources AB has closed a new senior secured bond issue of U.S. $200 million.

The bond issue is fully subscribed. Participants in the bond issue were major international and Norwegian investors.

The bond issue has a one (1) year term, and will mature in January 2009. The bond was made under two tranches; a NOK tranche of NOK 420 million and a USD tranche of U.S. $125 million. The bond carries an interest of 3 months Nibor + 5.0% and 9.5% respectively.

PA Resources is very pleased with the swift process of the issue and the successful reception of the loan on the capital market. The financing of the recent acquisition in the Republic of Congo as well as other planned business activities have now been secured, said Ulrik Jansson, President and CEO at PA Resources.