CALGARY, ALBERTA–(Marketwired – June 13, 2016) – Paramount Resources Ltd. (“Paramount” or the “Company”) (TSX:POU) announces the closing of the annual renewal of its bank credit facility (the “Facility”). The revolving period of the Facility has been extended to April 28, 2017 and the maturity date has been extended to April 28, 2018. Commitments under the renewed Facility are $350 million, with a scheduled step-down to $300 million on the earlier of October 31, 2016, or the occurrence of certain events that generate additional liquidity. Paramount continues to have no financial maintenance covenants under the terms of the Facility.
The Company continues to execute its debt reduction strategy, including non-core asset sales, a disciplined capital program and ongoing initiatives to further improve efficiencies and control costs. Paramount has reduced net debt by 32 percent to approximately $1.3 billion at April 30, 2016 from $1.9 billion at December 31, 2015.
As of June 9, 2016, approximately $148 million was drawn on the Facility. The Company recently received back and cancelled approximately $102 million of its undrawn letters of credit. As a result, the Company’s outstanding letters of credit have been reduced to approximately $59 million at June 9, 2016 from $152 million at April 30, 2016.
Paramount continues to maintain sufficient liquidity to support its activities. The Company’s 2016 capital program remains flexible and activity levels will be adjusted depending on commodity prices and other factors. The Company expects to fund its 2016 operations, obligations and capital expenditures with drawings on the Facility, funds flow from operations, proceeds from non-core asset sales and by accessing capital markets, if required.
Paramount is an independent, publicly traded, Canadian corporation that explores for and develops conventional petroleum and natural gas prospects, pursues longer-term non-conventional exploration and pre-development projects and holds investments in other entities. The Company’s principal properties are primarily located in Alberta and British Columbia. Paramount’s Class A Common Shares are listed on the Toronto Stock Exchange under the symbol “POU”.