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EXHIBIT 99
UNITED STATES EXPLORATION ANNOUNCES NEW CREDIT AGREEMENT WITH BANK OF OKLAHOMA
Denver, Colorado - August 30, 2000 - United States Exploration, Inc. (ASE - UXP)
announced today it entered into a credit agreement with Bank of Oklahoma, N.A.
on August 25, 2000. The revolving credit agreement is available through August
1, 2003 in the original amount of $6,000,000, which may be increased up to
$10,000,000 based on subsequent borrowing base determinations by the lender. The
loan bears interest at rates varying from lender prime to 0.75% below lender
prime, depending upon the outstanding principal balance of the loan, and is
secured by all of the Company's oil and gas properties. Interest is payable
monthly and principal is payable at the end of the credit term.
The Company has drawn $4,000,000 on the loan to repay a debt obligation to
Benson Mineral Group, Inc. (BMG), a private company owned by Bruce D. Benson,
the company's President and Chief Executive Officer. BMG had extended that
credit to enable the Company to settle its obligations to its prior lender. The
Company had agreed to repay the BMG debt as soon as a new credit agreement was
obtained. The balance of the borrowings available under the new credit agreement
can be used for working capital purposes, including the development of the
Company's oil and gas properties. The Company believes that the additional
borrowings available under the agreement, when combined with its existing cash
resources and continuing cash flow from operations, will be sufficient in the
near term for its ongoing operations and the development of its oil and gas
properties.
Mr. Benson was quoted as saying "This new financing arrangement completes our
total restructuring and we are now poised to move forward aggressively".
Additionally, UXP will soon commence a drilling program aimed at developing a
large portion of the proven undeveloped reserves of the company and has
initiated a 25-well behind pipe recompletion program. Results to date are as
expected.
This news release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 concerning the results of oil and natural gas drilling.
Although the company believes that its expectations are based on reasonable
assumptions, it can give no assurance that expected results will be achieved.
Important factors that could cause actual results to differ materially from
those in the forward-looking statements herein include drilling risks, operating
risks, market risks, risks related to the need to obtain additional financing
for development of its oil and gas properties and other risk factors as
described in the Company's 1999 Form 10-KSB as filed with the Securities and
Exchange Commission.
United States Exploration, Inc. is engaged in the acquisition, exploration,
development, production and marketing of natural gas and crude oil in North
America. The Company's principal reserves and producing properties are located
in northeast Colorado. The Company's common stock trades on the American Stock
Exchange under the symbol UXP.
