CALGARY, Alberta, May 31, 2019 (GLOBE NEWSWIRE) — Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX: PRQ) announces the completion of the 2019 annual review of its revolving credit facility (“RCF”), and provides an operations update.
REVOLVING CREDIT FACILITY
The 2019 annual review of the RCF has been completed. The RCF syndicate of lenders have reduced the Company’s borrowing base of $110 million to $100 million. The revolving period has been extended to May 31, 2020 and the maturity date for repayment of the RCF is May 31, 2020. Borrowings under the RCF above $95 million are subject to an approved development plan under the RCF and subsequent to August 31, 2019, consent from each of the RCF syndicate of lenders is required for borrowings under the RCF to exceed $95 million. At May 31, 2019, Petrus was drawn $95 million on the $100 million facility. The terms of the RCF have also been amended to include enhanced compliance and reporting features related to Alberta Energy Regulator regulations regarding abandonment and reclamation activities and certain restrictions on acquisitions and dispositions to ensure compliance with liability management ratings.
The Cardium light oil wells drilled during the first quarter of 2019 were brought on production in late March. With the 1.6 net additional wells, the Company’s field estimated average April production was 8,873 boe/d, compared to 8,505 boe/d in the first quarter of 2019. Light oil and liquids production made up 85% of the increased volumes. To maximize drilling cost efficiencies, and in part due to weather conditions, Petrus has deferred additional drilling to the third quarter of 2019. Capital spending for the second quarter of 2019 is expected to be spent on the completion of 0.3 net previously drilled non-operated wells, as well to add an additional condensate/light oil stabilizer to the Petrus operated Ferrier processing facility. The additional stabilizer will help to increase the efficiency of processing and treating condensate and light oil volumes that are expected to be delivered as part of the 2019 capital plan. As a result of the lower capital spending in the second quarter, Petrus expects that its quarterly debt repayment will be $4 to $5 million which is in excess of the $1 to $2 million previously forecasted.
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.