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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	WLR
Latest Price:	0.03 (0.00%)
52-week High:	0.07
52-week Low:	0.02
Market Cap:	7.20M

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World Oil Resources

World Oil Resources (ASX: WLR) is exploring for oil in Kansas.

Eromanga Hydrocarbons inks $10m funding deal to develop oil production projects

Friday, April 03, 2009

Eromanga Hydrocarbons (ASX:ERH) has signed a $10 million funding facility. The facility will provide funds over the next three years, to further develop oil production at Blocks 330 and 430 in Brazil, and for other corporate opportunities.

Fortrend has agreed to provide up to $10 million to Eromanga to be drawn down at Eromanga’s discretion by the issue of shares to Fortrend. Eromanga has the right but not the obligation to use the facility at any time over the facility’s 3 year term. Eromanga can determine the timing and amount of any drawdown within the provisions of the facility agreement.

The facility does not preclude any other equity or debt arrangements that Eromanga and its joint venture partners may decide to use to fund their projects.

In the event of a drawdown, shares will be issued at a 10% discount to the average closing price calculated over the 5 trading day period following a drawdown notice. In addition Fortrend will receive 1 option for every 5 shares issued. The strike price of the option will be the issue price of the shares to Fortrend.

Company CEO Phil Galloway said that “Eromanga is delighted that after detailed review of the company and its prospects, Fortrend has agreed to make available the $10m facility.”

Fortrend CEO Joe Forster said that “we are very pleased to be able to help fund Eromanga to achieve its corporate objectives of becoming a significant oil producer from its development projects in Brazil”.

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