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Gordon Creek Energy


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News Releases
 October 05, 2007
Thunderbird Arranges US$50 Million Credit Facility With Macquarie Bank Limited

 Vancouver, British Columbia, October 5, 2007- Thunderbird Energy Corp. (TSX-V: TBD) (the "Company") today announced that it has signed a commitment letter with Macquarie Bank Limited ("Macquarie"), whereby Macquarie intends to provide up to US$50 million (the "Facility") for the development of Thunderbird's existing oil and natural gas projects, and to fund future acquisitions. The commitment under the Facility is subject to Macquarie completing due diligence and obtaining internal approvals, and execution of satisfactory documentation.

The proposed Facility will have a term of 5 years and will operate as a revolving credit line for the first 3 years. Interest will be charged based on LIBOR + 350 bps. Advance Limits under the proposed Facility will be determined based on a ratio of Thunderbird's proven reserves, and will increase as the Company's reserves grow. The initial advance limit specified in the commitment letter is US$10.5 million.

Macquarie will be provided with 5 year warrants to purchase common shares of Thunderbird at prices between $0.50 and $1.00 per share for up to 13 million shares depending on the amount drawn under the Facility. Exercise of these warrants will be restricted for one year and partially restricted during the second year. The closing of the Facility and the issuance of the Warrants is subject to various conditions, including the execution of long form documentation and TSX approval, and is expect to take approximately 4 weeks.

In order to allow Thunderbird to immediately launch its fall exploration program at Gordon Creek, Macquarie has agreed to immediately provide Thunderbird with a $2 million demand loan which will be taken out when the Facility is in place. Details of the exploration program will be contained in a separate news release.

"We are very pleased to be working with Macquarie Bank" stated Cameron White, President of Thunderbird. "This facility provides Thunderbird with the opportunity to systematically execute our development and growth plans, while minimizing shareholder dilution. It will also allow us the opportunity to accelerate development of our projects and to move quickly when new opportunities arise."

Thunderbird Energy is a Canadian based oil and gas company with offices in Calgary and Vancouver that is focused on acquiring and developing untapped oil and natural gas opportunities, primarily in the United States. Thunderbird currently owns and operates the Gordon Creek natural gas field in Utah and holds a 50% working interest in a producing light oil project in Rush County, Kansas. Thunderbird's other holdings include a New Brunswick oil and gas exploration project adjacent to the Stoney Creek field. Thunderbird has pending agreements to substantially expand its Gordon Creek acreage and to acquire a large, high impact oil exploration project in Wyoming.

Macquarie Bank Group is a diversified international provider of specialist financial and investment banking services, with more than 12,000 employees in 24 countries. Through its Energy Capital Group, with offices in Houston, London and Sydney, Macquarie Bank provides a wide array of strategic debt and equity capital services for the global oil and gas industry.

For more information, contact:

Cam White

President and CEO

THUNDERBIRD ENERGY CORP.
847 Hamilton Street
Vancouver, B.C. V6B 2R7
Tel: 604-707-0373.
Fax: 604-707-0378
Email: cwhite@thunderbirdenergy.com
Website: www.thunderbirdenergy.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.

Caution Regarding Forward- looking information

Information in this news release respecting the reserves valuations, expected production levels, prices and anticipated total oil and gas recoveries constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements.

Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
 
 

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