Proteus Energy Corporation ("Proteus Energy"), today announced the
closing of a $10 million secured line of credit with Platinum Partners
Credit Opportunities Fund ("PPCO"), a private investment fund managed by
New York based Platinum Partners. Funds will be used for the drilling of
new wells at Proteus' Northwest Lost Hills oil and gas field in Kern
County, California and for its share of the costs related to continued
development of the Lynch Canyon heavy oil field in Monterey County,
California. PPCO also received equity in Proteus in the form of
Proteus Energy's proved developed and undeveloped reserves at December
31, 2011 were 1,965,135 barrels of oil equivalent (BOE), of which
199,847 BOE were proved developed reserves. Of these amounts, proved
reserves at Northwest Lost Hills were 1,930,313 BOE, of which 175,740
BOE were proved developed reserves. Proteus Energy has owned and
operated the Northwest Lost Hills properties since January 2008.
Ari Hirt, Portfolio Manager of PPCO, said: "We are excited about the
prospect of funding the growth of Proteus Energy and the investment
opportunity afforded. We are particularly impressed with the quality and
experience of Proteus Energy' management and board of directors, and we
look forward to a long and productive partnership."
Proteus Energy's CEO, Bennett Yankowitz, commented: "By giving Proteus
Energy access to capital to develop our reserves at Northwest Lost Hills
and Lynch Canyon, the PPCO financing will enable us to begin to realize
the value of our undeveloped reserves, which should accelerate our
revenue and earnings growth beginning in the second quarter of 2012.
Moreover, with PPCO's acquisition of a preferred stock position, we gain
a strong and sophisticated financial partner to support the continued
growth of our company. In addition to the development of our existing
properties, we are also looking to expand our operations and on-shore
oil and gas property holdings in California and other areas of the
Impact Capital Advisors, LLC (Los Angeles) and PacificWave Partners
Limited (Copenhagen) are acting as financial advisors to Proteus Energy.
About Platinum Partners
Platinum Partners Credit Opportunities Fund LLC is an asset-based
investment fund designed to achieve superior risk-adjusted returns
irrespective of the direction of broader market activity by originating
loans in markets that are underserved by traditional sources of
financing. Having commenced operations in late 2005, PPCO works with
borrowers in such diverse business segments as consumer finance, mining,
healthcare, litigation, secure trade finance and real estate. The
manager continuously seeks out new strategies to provide superior rates
of return to investors from various types of debt instruments.
About Proteus Energy Corporation.
Proteus Energy is a California based independent oil company with a
primary focus in California and the Western U. S. Its primary emphasis
has been on the development of mature oil fields. The company has an
experienced management and technical team and is looking to expand its
present operations in California and other Western States.
In addition to historical statements, the information set forth herein
contains forward-looking statements, including the estimated oil
reserves, which involve a number of risks and uncertainties. Certain
statements are based upon assumptions as to future events that may not
prove to be accurate or that may not materialize. Such risks and
uncertainties include, without limitation: Proteus Energy' ability to
implement, and obtain funding to carry out, its prospective businesses,
the possibility that the estimated oil and gas reserves will be
substantially less than projected, technological changes and the
possibility of increased competition, the substantial fluctuation in oil
and gas prices, and the impact on capital markets by the broad economic
downturn. Many of these risks are beyond Proteus Energy' ability to
forecast or control.