CALGARY, Jan. 21, 2020 /PRNewswire/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce its year-end 2019 production numbers as well as the reconfirmation of its existing credit facility.
Full Year 2019 Production
Full year 2019 production was 26,900 boe/d, within our recent full year guidance range of 26,750 to 27,250 boe/d. Additionally, production in the fourth quarter of 2019 was approximately 26,600 boe/d, with an average December rate of approximately 28,000 boe/d – allowing the Company to enter 2020 with operating momentum.
Reconfirmation of Existing Credit Facility
As previously disclosed, the Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination typically in May and November of each year. During the third quarter of 2019, the Company reached an agreement (the “Agreement“) with its lenders whereby the underlying borrowing base of the syndicated credit facility and the amount available to be drawn under the syndicated credit facility remain at $550 million and $460 million, respectively. Under the Agreement, the Company had, among other things, a reconfirmation date scheduled for January 20, 2020, whereby the commencement of the term-out period may have been accelerated on January 30, 2020. The syndicate lenders have advised they are not terming out the facility and the borrowing base remains unchanged. Also, under the Agreement, a borrowing base redetermination is scheduled for February 28, 2020 when the revolving period is scheduled to end unless extended with the consent of the lenders. If the facility is not extended on or prior to February 28, 2020, the Company would not be allowed to further draw on the syndicated credit facility and the amount outstanding would be due on November 30, 2020.
As at December 31, 2019, the Company had $399 million drawn on the syndicated credit facility compared to $404 million at September 30, 2019.