Subsequent to the end of the second quarter, on July 14, 2020, Bonterra’s credit facility was confirmed at $300 million, comprised of a $125 million revolving facility, a $25 million operating facility and a $150 million term loan facility with the revolving period extended to August 31, 2020 and the credit facility maturing on April 28, 2021. On August 19, 2020 the Company entered into the BDC Term Sheet with the BDC under their Business Credit Availability Program (“BCAP”) which, subject to the entering into of definitive agreements, will potentially provide the Company with an up to $45 million non-revolving, second lien, four year term facility (the “BDC Term Facility”). The BDC Term Facility will provide Bonterra with significant additional long-term liquidity at reasonable interest rates to withstand the impacts of the COVID-19 pandemic and allow the Company to continue pursuing development of its high-quality, Cardium light oil asset base in order to generate long-term, sustainable net asset value per share growth as the economy recovers. Based on a successful outcome from the BDC program, Bonterra would deploy proceeds to re-initiate its capital program in late Q3 and early Q4 2020 and target production levels consistent with those realized in 2019, leading to enhanced liquidity and improved financial flexibility.
To further advance its abandonment program, Bonterra has submitted applications under Alberta’s Site Rehabilitation Program (“SRP”) to abandon over 600 well bores, pipelines and well sites and has applied to similar programs in Saskatchewan and British Columbia, building on the successful abandonment of 45 inactive well bores and associated pipelines during the first quarter. The Government of Alberta will administer the SRP in various phases to provide grant funding through service providers for the abandonment or remediation of oil and gas sites. As a result of these programs, the Company has been approved for funding of approximately $6.6 million of abandonment costs in total and will continue its efforts to apply for further funding to leverage these programs for ongoing asset retirement obligations as further information is provided.
Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia, focused on its strategy of long-term, sustainable growth and value creation for shareholders. The Company’s shares are listed on The Toronto Stock Exchange under the symbol “BNE”.