Journey is pleased to report that it has reached an agreement with its syndicate of lenders to extend the current forbearance agreement until July 31, 2020. Journey has been diligently working with its lenders to reach an amicable solution to the reduction in its borrowing base caused by the impact of the COVID-19 pandemic on the worldwide economy and the resulting decrease in oil prices. The extension of the forbearance period will allow Journey additional time to keep pursuing a solution.
The extension to the forbearance agreement includes holding the bank line at a maximum of $77 million until the termination of the agreement on July 31, 2020, at which time the forbearance will be re-evaluated. During the intervening period, Journey will evaluate various alternatives with the syndicate as well as continuing to pursue the Federal Government backed loan support programs for the oil and gas sector announced on April 17, 2020.
Journey is also pleased to announce that it has reached an agreement with one of its largest shareholders and term debt provider, Alberta Investment Management Corporation (“AIMCo”), to add the semi-annual interest payment and accommodation fees due today to the principal amount owing under the loan. The capitalization of $2.3 million will provide Journey with much needed liquidity during these difficult times. Journey appreciates the ongoing support provided by AIMCo as a key investor.
About the Company
Journey is a Canadian exploration and production company focused on oil-weighted operations in western Canada. Journey’s strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods. Journey is also in the early phases of advancing development of an unconventional shale resource play in the oil window of the Duvernay, in the western shale basin of our central core area.