Continental Energy secures US$20 M equity line of credit

Oil and gas explorer Continental Energy Corporation announced Tuesday that it has entered into a financing agreement with Cornell Capital Partners, LP, providing a firm and binding ``Equity Line of Credit'' to the Company in the amount of up to US$ 20,000,000 over the next three years.

Cornell Capital Partners is a New York based investment fund managed by Yorkville Advisors Management, LLC.

According to the statement, Continental plans to utilize the funds raised to fund the Company's share of exploratory drilling costs on its Bengara-II Block. Second priority, funds will be applied to purchase additional oil and gas producing or development stage properties to build the Company's revenue base to the point at which it can fund further exploration from internally generated production revenues.

Continental is oil and gas exploration company focusing its efforts on discovering major reserves in Indonesia.

The Company owns and operates a 60 percent interest in two high potential exploration properties under Production Sharing Contracts covering some 3.7 million acres in Indonesia, the onshore Bengara-II Block and the offshore Yapen Block both are in Irian Jaya and a 70 percent interest in Bangkudulis oil field Technical Assistance Contract (TAC) in Northeast Kalimantan. (alex)