HOUSTON, Sept. 19, 2017 /PRNewswire/ -- Freedom Oil and Gas Ltd (Freedom) (ASX: FDM, OTCQX: FDMQF) is pleased to announce that it has closed on $10.0 million of financing with Ramas Capital Management, LLC (Ramas Capital), with the ability to expand to $20.0 million within five months if certain well performance is met. The funds will be used to finance the ongoing development of Freedom's Eagle Ford acreage, including drilling, completion, land acquisition and associated activities.
Commenting on the Ramas Capital transaction, Executive Chairman and Chief Executive Officer, J. Michael Yeager, said, "We are pleased to partner with Ramas Capital as we initiate the second phase of our Eagle Ford development plan. This financing positions Freedom to continue developing our acreage without delay and provides a flexible financial bridge to meet the requirements to activate the much larger and lower cost reserves based lending facility we established with Wells Fargo. The Wells Fargo facility is intended to provide capital for ongoing drilling once adequate production levels are reached. With this support from Ramas Capital, we plan to drill and complete two to four additional horizontal wells to more fully test our Dimmit County, TX acreage in the Eagle Ford Shale formation and grow our production to meet the Wells Fargo criteria. This is in addition to our first two Eagle Ford wells which have already been drilled and completed, and should begin flow-back and production within the next few weeks."
For further detail on the terms of the financing refer to Freedom's ASX announcement released today and available via the ASX and Freedom's website at www.freedomog.com.
About Freedom Oil and Gas Ltd
Freedom Oil and Gas Ltd is a development stage company striving to build a growing, investment grade oil and gas company. The Company continues to acquire undeveloped acreage in the liquids rich area of the Eagle Ford Shale in South Texas, in the United States.
Further inquiries contact information:
J. Michael Yeager
Chief Executive Officer
SOURCE Freedom Oil and Gas Ltd