CALGARY, July 4, 2017 /CNW/ – (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.
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.
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