California Energy Sells Notes to Fund Drilling

California Energy Co. Inc. sold $30 million worth of notes to Principal Mutual Life Insurance Co. to fund exploration and drilling projects at the China Lake Naval Weapons Center, according to a filing with the Securities and Exchange Commission.

California Energy said it sold 12% senior notes due 1995 to Principal Mutual on March 15. The notes also carry a contingent interest that will not exceed more than 10% of the company’s cash flow from its joint ventures.