Westgate Energy closes US$25 million senior secured loan

On April 3, 2025, Westgate Energy Inc. ("Westgate") announced the closing of its previously announced first lien senior secured loan for up to US$25 million from Cibolo Energy Partners, LLC and certain of its affiliates (collectively, "Cibolo"). The loan is a strategic and transformational transaction for Westgate that allows it to fund drilling on its existing lands and potentially on strategic Mannville Stack focused assets it proposes to acquire in East-Central Alberta near Frog Lake.

The credit agreement with Cibolo provides for a multi‐draw, non‐revolving term loan facility of a maximum aggregate principal amount of up to US$25.0 million, from which Westgate has made an initial draw of US$10.0 million. An additional US$10.0 million has been committed and remains available for draw, with additional commitments subject to further approval by Cibolo.

The loan carries an interest rate due quarterly of SOFR plus 7.75%, with an SOFR floor of 4.25%, and will mature on April 3, 2029. Based on the current SOFR rate, the initial interest rate will be approximately 12.04%. The company's wholly owned subsidiary, Westgate Energy Operations Ltd., has guaranteed the loan.

Further information can be found on Canada Newswire’s website.

Westgate Energy is a newly public, high-growth junior exploration and production (E&P) company focused on responsibly unlocking untapped Mannville Stack medium and heavy oil resources in Eastern Alberta.

Cibolo is a Houston‐based private investment group specializing in alternative credit opportunities within the North American energy sector.