CALGARY, ALBERTA–(Marketwired – May 2, 2016) – Lightstream Resources Ltd. (the “Company” or “Lightstream”) (TSX:LTS) announces that the semi-annual borrowing base re-determination under our syndicated secured termed credit facility has been completed and the borrowing base has been reduced from $550 million to $250 million. The borrowing base is set by the lowest determined amount by any one member of the 16 member syndicate; the range was from $250 million to $380 million. Currently the Company has $371 million outstanding under the credit facility including issued letters of credit. Under the terms of the credit agreement, we have 90 days to cure the shortfall before triggering an event of default. The Company has cash on hand, regular monthly oil and gas revenue and we intend to continue with normal operations during the cure period. In addition, we continue to pursue various strategies to improve our balance sheet and liquidity position, including alternate first lien financing, asset sales and negotiated restructuring alternatives, which we are targeting to have completed or well in progress prior to June 30, 2016. However, if we are unable to execute on an appropriate strategic transaction in a timely manner, based on current commodity prices, our funds flow from operations is not expected to be sufficient to fund our upcoming junior debt interest payment obligations, the first of which is due June 15, 2016.
Lightstream Resources Ltd. is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays. We are committed to delivering industry leading operating netbacks, strong cash flows and consistent operating results through leading edge technology applied to a multi-year inventory of existing and emerging resource play opportunities. Our long-term strategy is to efficiently develop our assets and deliver an attractive dividend yield.