PetroShale announced the new corporate structure of PetroShale (US), Inc., the execution of a new three year revolving credit facility with Independent Bank of Dallas, Texas, and the execution of a new one year revolving credit facility with the Todd Slawson Trust ("Slawson Note").

The new structure of PetroShale (US), Inc., a subsidiary of PetroShale Inc., involved the creation of PetroShale (US) Land 1 LLC ("Land LLC") and PetroShale (US) Production LLC ("Production LLC") as wholly owned subsidiaries. "Production LLC" primarily holds proved producing assets, whereas "Land LLC" holds our leased US acreage and new wells.

The Independent Bank $50 million dollar revolving line of credit has a 36 month term, expiring Aug. 31, 2016, with an initial borrowing base of $3 million secured by the assets of "Production LLC". The borrowing base will be re-determined a minimum of twice yearly. Terms of the Independent Bank facility include a 1% origination fee, a 0.5% fee on available but undrawn funds, prime plus 0.5% interest with a 4.0% interest minimum, with no parent company guarantees.

The Slawson Note is a restructuring of the previous Slawson Note into a revolving facility secured by the assets of "Land LLC". The Slawson Note, provided by Todd Slawson Trust, is a $2.1 million dollar credit facility that expires October 12, 2014. The basic terms of the Slawson Note include a 0.75% origination fee, a 0.5% fee on available but undrawn funds, a 12% interest rate, with no parent company guarantees.