HOUSTON, Nov. 16, 2015 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB: HECC) announced it has succeeded in redeeming all its convertible notes that have floorless conversion rights. All the notes were paid in full prior to any conversion of the debt into equity.
Hydrocarb Energy was able to complete several financings under more favorable terms which allowed the company to redeem all floorless convertible debt before any dilutive conversions into common stock could take place. The new financings that have facilitated the payoff of these floorless notes include approximately $1.74 million raised using the company's most recent private placement. In addition to these funds raised beginning around August 1, 2015, the company has implemented a new series of short term "Cash Redeemable Notes" that are not designed nor intended to be convertible into the company's common stock.
When asked to comment, Kent Watts the company's Chief Executive Officer stated, "Our realized production enhancements from our 2015 work program combined with our current reserve report, which shows approximately $95 million of estimated future net income potentially available to us from all of our proved reserve categories, puts us in a position to replace all our current debt with new debt on more favorable terms. We are happy to have paid off these floorless notes as it has prevented significant dilution of our common stock." Mr. Watts went on to say, "The company is now actively seeking a longer term solution through more traditional secured debt. If successful this new financing could allow us to fully develop our Galveston Bay and Namibia based assets."
About Hydrocarb: Hydrocarb Energy Corporation is a publicly-traded Domestic and International Energy Exploration and Production Company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa and domestic production in Galveston Bay, we maintain offices in Houston, Texas, and Windhoek, Namibia.
For further information: www.hydrocarb.com.
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Forward-looking statements are subject to risks inherent in natural gas and oil drilling and production activities, including risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks with respect to natural gas and oil prices, a material decline which could cause the company to delay or suspend planned drilling operations or reduce production levels; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in natural gas and oil prices; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or fourth party consents; and other risks described in the company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the company. The company's SEC filings are available at http://www.sec.gov.
Contact: Kent P. Watts, CEO
800 Gessner, Suite 375
Houston, Texas 77024
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SOURCE Hydrocarb Energy Corporation