Cuda Oil and Gas Inc.Announces Additional $ 4 Million Financing From Senior Lender


Calgary, Alberta – (Newsfile Corp. – August 7, 2021) – Cuda Oil and Gas Inc. (TSXV: CUDA) (“Cuda“or the”Company“) is pleased to announce additional funding of $ 4.0 million (“Credit facility B“) of his Principal lender, Tallinn Capital Energy Limited Partnership (“Tallinn“), under the senior credit facility agreement signed on January 20, 2021. The additional proceeds will be used for the payment of accounts payable related to and further development of its petroleum assets and injection program gas miscible in the Powder River Basin., Converse County, Wyoming.

The original maturity date of November 30, 2021 will remain in effect for the Senior Credit Facility and will also apply to Credit Facility B, and Credit Facility B will be charged interest at 16% per annum unless an event of default occurs and persists, allowing the Senior Lender to apply interest at 19% per annum on the unpaid amounts. Repayment of all credit facilities will continue to follow the original repayment schedule under the Senior Credit Facility. Tallinn will receive customary commitment, labor and monitoring fees and a 1% deferred interest charge on Credit Facility B. Approval for additional funding has been received from the Company’s subordinate Canadian institutional lender.

With the exception of an oil put request by Tallinn, the amendments to the Senior Credit Facility contract resulting from the B Credit Facility will not include additional financial, operational and environmental covenants. However, Tallinn and the Company have agreed to hire a business advisor by August 9, 2021 to continue a sales process, including opening an online data room by August 27, 2021. From plus, the Company will execute one or more letters of intent by September 30, 2021 and a binding offer to purchase by October 31, 2021. As previously noted, continued asset rationalization and / or funding by through stock issues, private placements, restructuring of existing or new credit facilities, property sales, increased production from core properties combined with improved realized oil and gas prices receipts and / or a combination of these alternatives will be required to continue operation.

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the exploration, development and production of oil and natural gas and the acquisition of oil and gas properties in North America. Cuda’s management team has worked closely together in private and public corporate environments. Cuda will continue to execute its proven strategy of exploration, acquisition and exploitation with a long-term focus on large light petroleum-based assets in North America, including significant operational experience in the United States. United. Cuda’s management team brings a full spectrum of geotechnical, engineering, trading and financial backgrounds to its investment decisions.

For more information, please contact:

Glenn dawson
President and CEO
Cuda Oil and Gas Inc.
(403) 454-0862

Forward-looking information

This press release contains forward-looking information. All statements other than statements of historical fact included in this press release are forward-looking information that involves various risks and uncertainties and are based on forecasts of future transactions, estimates of amounts not yet determinable and management assumptions. . In particular, this press release contains forward-looking information regarding: (i) the use of the proceeds of the financing; (ii) exploration and development activities; and (iii) the Company’s intention to seek strategic alternatives. These statements are based on certain assumptions of the Company relating to current conditions and expected future developments, including assumptions relating to regulatory approvals and business prospects and opportunities. Risk factors that could prevent the realization of forward-looking statements relating to Cuda and its operating activities include current permit requirements, actual results of current exploration and development activities, operational risks, associated risks. during drilling and completions, the uncertainty of geological and technical data. , access to capital, market conditions, availability and nature of alternative energy sources, conclusions of economic assessments and changes in project parameters as plans continue to be refined as well as prices futures of oil and natural gas. Although Cuda has attempted to identify significant factors that could cause actual results to differ materially, other factors may cause results not to be as anticipated, estimated or expected. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or liability, except as required by law, to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Michael J. Birnbaum

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