CALGARY, ALBERTA–(Marketwired – Aug. 2, 2016) –Â Pine Cliff Energy Ltd. (“Pine Cliff” or the “Company“) (TSX:PNE) is pleased to announce that it has issued subordinated floating charge debentures to insiders of the Company for a total of $11 million (the “Debentures“), entered into a purchase and sale agreement to sell a non-core oil asset for $5.5 million (the Disposition“) and extended its semi-annual borrowing base redetermination with its banking syndicate of Canadian Financial Institutions (the “Syndicate“) until August 10, 2016.
The Debentures mature on July 29, 2018, can be repaid at any time without penalty and will bear interest at 0.25% less than the monthly average effective interest rate paid to the Syndicate. The proceeds from the Debentures will be used to pay down bank indebtedness resulting in a permanent reduction to the Company’s borrowing facility.
The Disposition will be effective July 1, 2016 and is anticipated to close on August 10, 2016. The agreement related to the Disposition is subject to various standard conditions and there is no assurance that the Disposition will close at all. The Disposition assets currently produce approximately 130 barrels per day of oil.
About Pine Cliff
Pine Cliff is a natural gas company with a long-term view of creating shareholder value. Further information relating to Pine Cliff may be found on www.sedar.com as well as on Pine Cliff’s website at www.pinecliffenergy.com.