CALGARY, July 4, 2017 /PRNewswire/ - (TSX:PMT)
- Perpetual Energy Inc. ("Perpetual" or the "Company") is
pleased to announce that the Company has entered into a new
reserve-based credit facility agreement which increases the
borrowing capacity available by 100% to $40
million from the previous $20
million. The increase is a result of Perpetual's improved
funds flow performance driven by high graded operations and strong
drilling results in the Company's East
Edson focus area, coupled with financing initiatives
completed in 2017 year to date and the early repayment of senior
notes previously due in March 2018.
Through the arrangements, the maturity date of the reserve-based
credit facility has been extended from October 31, 2017 to May
31, 2019. The next semi-annual loan review is scheduled for
November 30, 2017.
Perpetual is also pleased to announce that it has arranged for
the refinancing of the $36.5 million
of margin loans secured by the Company's shares of Tourmaline Oil
Corp. ("TOU Share Put Option Margin Loans") as they mature in
August and November of 2017. The existing TOU Share Put Option
Margin Loans will be repaid through a combination of a replacement,
one year term, non-revolving loan equal to 40% of the value of
Perpetual's 1,667,000 TOU share investment, equating to
approximately $18 million at the
current TOU share price of $27.88/share (the "Replacement TOU Share Margin
Loan"), the final $10.0 million
drawdown on the Term Loan arranged during the first quarter of
2017, and additional borrowings under its reserve-based credit
facility. The Replacement TOU Share Margin Loan has lower borrowing
costs and increased repayment flexibility compared to the existing
TOU Share Put Option Margin Loans.
The increased reserve-based credit facility and Replacement TOU
Share Margin Loan, combined with forecast funds flow, will be used
to continue to fund the Company's previously-announced
growth-oriented capital program.
About Perpetual
Perpetual is an oil and natural gas exploration, production and
marketing company headquartered in Calgary, Alberta. Perpetual operates a
diversified asset portfolio, including liquids-rich natural gas
assets in the deep basin of west central Alberta, heavy oil and shallow natural gas in
eastern Alberta, with longer term
opportunities through undeveloped oil sands leases in northern
Alberta. Additional information on
Perpetual can be accessed at www.sedar.com or from the
Corporation's website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
Forward-Looking Information
Certain information regarding Perpetual in this news release
including management's assessment of future plans and operations
may constitute forward-looking information or statements under
applicable securities laws. The forward looking information
includes, without limitation, anticipated amounts and allocation of
capital spending; statements pertaining to adjusted funds flow
levels, future development and capital efficiencies, completions
and development activities; projected realized natural gas prices
and adjusted funds flow; commodity prices and foreign exchange
rates; and gas price management. Various assumptions were used in
drawing the conclusions or making the forecasts and projections
contained in the forward-looking information contained in this
press release, which assumptions are based on management's analysis
of historical trends, experience, current conditions and expected
future developments pertaining to Perpetual and the industry in
which it operates as well as certain assumptions regarding the
matters outlined above. Forward-looking information is based on
current expectations, estimates and projections that involve a
number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by
Perpetual and described in the forward-looking information
contained in this press release. Undue reliance should not be
placed on forward-looking information, which is not a guarantee of
performance and is subject to a number of risks or uncertainties,
including without limitation those described under "Risk
Factors" in Perpetual's MD&A for the year-ended
December 31, 2016 and those included
in other reports on file with Canadian securities regulatory
authorities which may be accessed through the SEDAR website
(www.sedar.com) and at Perpetual's website
(www.perpetualenergyinc.com). Readers are cautioned
that the foregoing list of risk factors is not exhaustive.
Forward-looking information is based on the estimates and opinions
of Perpetual's management at the time the information is released
and Perpetual disclaims any intent or obligation to update publicly
any such forward-looking information, whether as a result of new
information, future events or otherwise, other than as expressly
required by applicable securities law.
The forward-looking information and statements contained in
this news release speak only as of the date of this news release
and neither the Corporation nor any of it subsidiaries assumes any
obligation to publicly update or revise them to reflect new events
or circumstances, unless expressly required to do so by applicable
securities laws.
SOURCE Perpetual Energy Inc.