Canacol Energy Ltd. has entered into an agreement, through a wholly owned subsidiary, for a US$ 200 million credit facility with a syndicate of banks led by Scotiabank as Sole Lead Arranger and Administrative Agent, and including Citibank as Documentation Agent.

The initial borrowing base of US$ 85 million under the credit facility, which remains subject to the satisfaction of certain conditions precedent set forth in the credit agreement, consists of a reserve-based revolving facility of US$ 55 million and a term facility of US$ 30 million to replace the Corporation's existing gas plant credit facility.

The revolving facility has a three year term and is subject to re-determination of the borrowing base semi-annually on April 1 and October 1 each year, beginning on October 1, 2012.

Tags: Canacol Energy Inc.