Exall Energy Corporation announced that further to its September 25, 2014 announcement, one of the syndicate members that was providing the underlying funding for a debenture purchase agreement with a private Canadian lender has agreed as a preliminary step to pay out Exall's existing facility with Exall's current senior Canadian lender in full, in consideration for an assignment of the Facility and security package. Exall's current senior Canadian lender had previously stipulated it would not act under its security until after September 30, 2014, which was intended to permit the Agreement with the Lender to be closed. However, the parties have been advised that closing of the transaction with the Lender has been delayed until later in October, and as a result Exall and the Lender were forced to revise the prior process to accommodate Exall's current senior Canadian lender.

The Lender intends to complete the original Agreement in late October with Exall, which will result in the issuance of a $35 million debenture, fully secured by Exall's assets (the Debenture), at which time the interim lender will be paid out in full.