Amegy Bank and Infinity in Negotiations Regarding Conversion of Debt to Equity
Bank Advances Company Additional Working Capital Funds
(firmenpresse) - OVERLAND PARK, KS -- (Marketwire) -- 01/03/12 -- Infinity Energy Resources, Inc. (OTCQB: IFNY) (PINKSHEETS: IFNY) ("Infinity" or the "Company"), an independent oil and gas exploration and development company, today announced that it has entered into final negotiations with Amegy Bank (the "Bank") regarding the possible conversion of the Company's outstanding debt obligations to the Bank into equity in Infinity Energy Resources, Inc. Offshore Financing, LLC, an entity unrelated to the Bank that previously loaned Infinity $1.3 million, has agreed to convert its promissory note into equity under terms that are substantially equivalent to the terms of the Company's agreement with the Bank.
"We had hoped to complete the negotiations and enter into a formal agreement for conversion of the approximately $17 million in debt and related fees that we owe the bank into equity in Infinity Energy Resources," stated Stanton E. Ross, Chief Executive Officer of the Company. "However, distractions associated with the holidays prevented the completion of a definitive agreement by year-end. We are optimistic that a final agreement can be reached in the very near future, the terms of which will greatly improve Infinity's ability to pursue relationships with strategic and/or financial partners regarding exploration activities on our 1.4 million-acre offshore oil and gas concession in Nicaragua."
Infinity also announced that the Bank advanced Infinity an additional $125,000 in funds for working capital purposes in December 2011.
The latest Forbearance Agreement with the Bank expired on December 31, 2011. Additional information regarding the outcome of the negotiations will be provided when available.
Infinity Energy Resources, Inc.'s primary operations involve exploration and development activities associated with oil and gas concessions covering approximately 1.4 million acres offshore Nicaragua in the Caribbean Sea.
Infinity is headquartered in Overland Park, Kansas and its common stock is currently traded on the OTCQB Exchange under the symbol "IFNY" and "IFNY.PK". The Company's financial statements and additional information are available on the Internet at or .
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements in this press release include the success of the Company's plans to move forward with exploration and development activities in Nicaragua; the Company's ability to obtain financing to conduct a 3-D seismic mapping program and to provide working capital to sustain its operations; its ability to enter into a definitive agreement for the conversion of debt obligations, and related fees, payable to Amegy Bank into equity in Infinity Energy Resources; whether the Company will receive clearance from the Nicaraguan government for environmental regulation compliance; whether there are hydrocarbons present in the Cretaceous and Eocene zones in the concessions; the quantity of hydrocarbons beneath the Company's concessions; the inability to predict, in advance of drilling and testing, whether any prospect will yield oil in sufficient quantities to recover drilling and/or completion costs or to be economically viable; the necessity for estimates to be based upon available geological, geophysical and engineering data that can vary in quality and reliability; the Company's ability to eventually extract oil from the offshore concessions and the costs and technical challenges of doing so; and whether the Company will be able to obtain financing to explore or develop its prospects, and if it is able to do so, whether or not the terms will be acceptable to the Company. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company, including risk factors, are contained in the Company's periodic filings with the Securities and Exchange Commission.
For additional information, please contact:
Stanton E. Ross
President/CEO
(913) 948-9512
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Datum: 03.01.2012 - 12:28 Uhr
Sprache: Deutsch
News-ID 100501
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contact information:
Town:
OVERLAND PARK, KS
Kategorie:
Oil & Gas
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"Amegy Bank and Infinity in Negotiations Regarding Conversion of Debt to Equity"
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