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Exhibit99.1
BASELINE OIL & GAS
CORP. RETIRES CONVERTIBLE
NOTES DUE NOVEMBER
2007
HOUSTON, November 21,
2007—Baseline Oil & Gas Corp.
(“Baseline” or the “Company”) (OTCBB: BOGA)
announced today that it has retired $1.65 million aggregate
principal amount of convertible promissory notes due
November 15, 2007 (the “Notes”). Such Notes
constituted 70% of the $2.375 million aggregate principal amount of
Notes issued by Baseline in November of 2005. At or prior to
November 15, 2007, holders of $0.725 million of the Notes
elected to convert their Notes into shares of Baseline common
stock. All Notes were convertible into Baseline common stock
at $0.50 per share and earned interest at the rate of 10% per
annum during the first 18 months and 12% per annum during the
next 6 months. The Notes which were repaid eliminated the need
for Baseline to issue 3.3 million additional shares of common
stock. Cash on hand was utilized to repay such
Notes.
Presently, Baseline has approximately
$14 million of cash, which the Company will utilize to further
implement its ongoing development program in both its Blessing and
Eliasville Fields, located in Stephens and Matagorda counties
Texas, respectively. In addition, Baseline currently has $12
million of availability under its existing $20 million revolving
credit facility, thus affording the Company additional
liquidity.
Thomas Kaet
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