New Standard Energy Limited announced that it has reached agreement on a terms sheet to establish an initial debt facility of up to $32.5 million for the company, with closing conditional upon the completion of satisfactory due diligence and legal documentation. The agreement is with a large and reputable global financial services company. Upon closing, New Standard will have the ability to draw down $12.5 million of a senior secured facility, which will be used to fund the company's Eagle Ford drilling expenditure and any ancillary expenses.

The facility also allows an additional $20 million to be drawn, based on the reserves and production growth resulting from the Peeler Ranch-5H and 6H wells, which are currently awaiting hydraulic stimulation and completion. The arrangement also establishes a relationship to grow debt funding as future wells are drilled by New Standard in the Eagle Ford.