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| | Tue Mar 3, 2009
Derek Arranges Convertible Loan for up to US$1,000,000
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| | Derek is pleased to announce that, through its operating subsidiary, it has secured a loan for US$1,000,000. Under the terms of the loan monies are advanced in monthly increments of US$200,000 per month to a maximum indebtedness of US$1,000,000. After the initial US$200,000 is advanced (funds received) any and all further advances are at the sole discretion of the lender. The loan shall have a term of 24 month and bears interest at a rate of 9% per annum. Interest is payable quarterly. At the lenders option, and subject to regulatory approval, any principal amount outstanding may be converted in shares in Derek at the rate of Cdn$0.10 per share. A Grid Promissory Note and the assignment of a 4% royalty interest in the Company's LAK Ranch Project secure the note. The 4% royalty interest shall be reassigned to Derek upon repayment of the note.
The proceeds are to be committed for the development of the Company's oil project, the LAK Ranch, in Wyoming where, with the recently acquired generators and artificial lift equipment the Company will be able to increase steam capacity and productivity..
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's prolific Powder River Basin.
Derek Oil & Gas Corporation is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
"Signed"
Mr. Barry C.J. Ehrl, President and C.E.O.
For further information please contact Derek's Corporate Communications Department at:
Telephone: 1-888-756-0066 or (604)-331-1757
Corporate E-Mail: info@derekoilandgas.com |
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