Esrey Energy Ltd. has entered into a debt settlement agreement to settle in full the matured non-revolving credit facilities owed by the Corporation's subsidiary, Kaynes Capital S.a.r.l., to an arm's length credit. At maturity Kaynes owed US$3,377,776 under the credit facilities.
In exchange for settlement of the amount due, the Company, through its wholly owned subsidiaries, will:
•Fund the Creditor's share of certain work programs in Papua New Guinea ('PNG') that the parties are involved in; and
•For a period of 72 months after the date of closing, acquire any new oil and gas licenses in PNG through the Company's subsidiary, Telemu No. 18 Limited, in which the Creditor has a 15.75% indirect interest.
The debt settlement agreement closed effective March 31, 2015.