(RTTNews) - Oil and natural gas exploration and production company Probe Resources Ltd. (PBR.V: News ) Monday announced the appointment of Richard FitzGerald as new Chief Financial Officer. The company also said that it has entered into a Debt Restructuring Agreement, or DRA, for retirement of its outstanding trade and secured debt.

The company said that FitzGerald replaces Paul Diven, who will now serve as Controller of the company.

According to the company, FitzGerald has over 30 years of financial and accounting experience primarily in the energy industry. He started his career in Chicago, IL with Arthur Andersen. He was the Chief Financial Officer of HMT Inc., Eagle Rock Energy Partners, L.P. (EROC: News ), Natco Group Inc (NTG: News ) and the former Universal Compression Inc. (UCO: News ).

Further, Probe Resources stated that the DRA, which the company announced through its operating subsidiaries Probe Resources US Ltd and Probe ST 214 Ltd, replaces and supersedes the previously announced Interim Creditor Agreement, or ICA. The DRA schedules repayment of the company's trade payables in an orderly manner consistent with anticipated revenues, following deduction for general and administrative as well as lease operating expenses of the company.

Probe Resources said that under the terms of the DRA, repayment will be made to all trade creditors with interest at an annual rate of 10%. The company also agreed to restrictions on the sale of certain company assets. The company expects that all creditors would be paid by the third quarter of 2010, presuming revenues and expenses continue at current levels. The repayment schedule self adjusts in the event of a rise or decline in the price of natural gas.
The company also stated that a Creditors' Committee was formed under the DRA to resolve future issues, and a Creditors' Agent has been selected by the Creditors' Committee to oversee payments by the company. The DRA authorizes the Creditors' Committee to manage not only repayment of existing obligations, but also to ensure the company stays current on future payables.

Additionally, Probe Resources said that it is extremely pleased with the completion of the DRA and the security that it brings to the company in terms of developing its ongoing business in the Gulf of Mexico.

PBR.V closed Friday's trading at C$0.09.

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by RTT Staff Writer

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