VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Thunderbird Energy Corp. (News - Market indicators) (FRANKFURT:M2Y) (the "Company") today announced that its 15% Gas Linked Debentures (the "Debentures") have been listed for trading on the TSX-V effective April 26, 2011 under the trading symbol "TBD.DB". Up to $10 million principal amount of Debentures are authorized of which $7.5 million were issued in 2010. The Company is currently conducting a non-brokered financing of up to $2.5 million principal amount of additional Debentures.
The Debentures are due October 31, 2013 and earn a base interest rate of 15% per annum, with quarterly rate adjustments whereby the interest rate payable will be increased by one percent (1%) for each $0.50 increase in the average price of natural gas (Henry Hub) above $5.00, subject to a maximum of 25%. Interest will be payable fifty percent (50%) in cash and fifty percent (50%) in common shares of Thunderbird.
Purchasers of the Debentures will also receive three year warrants to purchase additional common shares of Thunderbird on the basis of one warrant for every $0.50 principal amount of Debentures purchased. The warrants will be exercisable at a price of $0.30 in year one, $0.40 in year two and $0.50 in year three.
Although the financing is non-brokered, Thunderbird will pay a commission to agents that arrange for the sale of Debentures equal to 7.5% of the gross proceeds raised. Agents will also receive warrants to purchase additional shares of the Company at a price of $0.20 until October 31, 2013. The number of warrants to be issued will be determined by dividing 10% of the proceeds raised by $0.20.
Thunderbird Energy is a Canadian based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions. Thunderbird's holdings include the Gordon Creek, Utah natural gas field, the Rush County, Kansas light oil project and a light oil exploration project in Weston County Wyoming.
Caution Regarding Forward- looking information
Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.