Daily News: February 27, 2012

Platinum Partners Fund Provides $10 Million to Proteus Energy


Proteus Energy Corporation announced the closing of a $10 million secured line of credit with Platinum Partners Credit Opportunities Fund (PPCO), a private investment fund managed by New York based Platinum Partners. Funds will be used for the drilling of new wells at Proteus’ Northwest Lost Hills oil and gas field in Kern County, CA and for its share of the costs related to continued development of the Lynch Canyon heavy oil field in Monterey County, CA. PPCO also received equity in Proteus in the form of preferred shares.

“We are excited about the prospect of funding the growth of Proteus Energy and the investment opportunity afforded. We are particularly impressed with the quality and experience of Proteus Energy’ management and board of directors, and we look forward to a long and productive partnership.”

Proteus Energy’s proved developed and undeveloped reserves at December 31, 2011 were 1,965,135 barrels of oil equivalent (BOE), of which 199,847 BOE were proved developed reserves. Of these amounts, proved reserves at Northwest Lost Hills were 1,930,313 BOE, of which 175,740 BOE were proved developed reserves. Proteus Energy has owned and operated the Northwest Lost Hills properties since January 2008.

Ari Hirt, portfolio manager of PPCO, said: “We are excited about the prospect of funding the growth of Proteus Energy and the investment opportunity afforded. We are particularly impressed with the quality and experience of Proteus Energy’ management and board of directors, and we look forward to a long and productive partnership.”

Impact Capital Advisors (Los Angeles) and PacificWave Partners Limited (Copenhagen) are acting as financial advisors to Proteus Energy.

Platinum Partners Credit Opportunities Fund LLC is an asset-based investment fund designed to achieve superior risk-adjusted returns irrespective of the direction of broader market activity by originating loans in markets that are underserved by traditional sources of financing.

Proteus Energy is a California based independent oil company with a primary focus in California and the Western U.S.