Arete Industries, Inc. announced it signed a line of credit with a bank and renegotiated the existing advances and amounts due to the related parties. In addition, the company extended the due date for the existing debt to Burlingame Equity Investors II, LP and Burlingame Equity Investors Master Fund, LP. On January 28, 2014, the company entered into a line of credit loan agreement for $1,500,000 due January 15, 2015.

The terms of the note are as follows: (1) the accrued interest is payable monthly starting February 28, 2014; (2) the interest rate is variable based on an index equal to the prime rate as published by the Wall Street Journal (currently 3.25%) plus 1%, subject to a minimum rate of 6.5%., (3) the note has draw provisions, with the first draw of $479,701.39, (4) the note is secured by seven wells and leases owned by the Company, a certificate of deposit for $500,000 at CityWide Bank pledged by a third party, and (5) the personal guarantee of the Nicholas Scheidt, Chief Executive Officer.