CALGARY, May 29, 2018 /CNW/ – Cequence Energy Ltd. (“Cequence” or the “Company”) (TSX: CQE) is pleased to announce the Company has extended its Senior Credit borrowing capacity with its Syndicate of Lenders. The borrowing base has been reduced to $9 million (previously $12 million) with an extension term until July 31, 2018. The Company remains undrawn on its Senior Credit facility other than approximately $1.5 million in letters of credit. As at March 31, 2018, the Company had $74.5 million in net debt comprised of $60 million in senior notes carrying a five year term (maturing in October 2018) and a working capital deficiency of $14.5 million.
The Company continues to actively pursue various strategies to improve its liquidity position including: ongoing discussions with CPPIB Credit Investments Inc. as the sole noteholder, debt or equity financing, potential business combinations or other restructuring. Management is hopeful that it will be able to implement one or more of these strategies prior to the CPPIB senior notes maturing, although that is not guaranteed. Further details are set forth in the financial statements available on SEDAR.
About Cequence
Cequence is a publicly traded Canadian energy company involved in the acquisition, exploitation, exploration, development and production of natural gas and crude oil in western Canada. Further information about Cequence may be found in its continuous disclosure documents filed with Canadian securities regulators at www.sedar.com.