CALGARY, Alberta – (PIPE – TSX-V) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) was notified by Keyera Corp. (“Keyera”) on August 27, 2020 that the issue relating to the Waste Heat Recovery System within the Keyera Wapiti Gas Plant (“Keyera Plant”) is more widespread than previously indicated. The total scope of the problem and root cause of the outage has yet to be determined. As such the original estimate provided by Keyera to repair the plant and return to operations is no longer valid. In addition at this time, Keyera is unable to provide a definitive indication for the expected go-forward outage duration.
Based on this new development, Pipestone Energy is formally suspending its 2020 production and cash flow guidance due to the timing uncertainty for a return to normal operations at the Keyera Plant. It should be noted, the Company’s contingent business interruption insurance includes coverage over the Keyera Plant and has a 30-day waiting period. As such it is expected to cover any net financial losses incurred by Pipestone Energy with respect to the outage post September 16, 2020 if required. When the Company receives definitive information in regards to an expected timeline for the resumption of operations at the Keyera Plant, Pipestone Energy will provide a further update to the market.
Pipestone Energy Corp.
Pipestone Energy Corp. is an oil and gas exploration and production company with its head office located in Calgary, Alberta. The company is focused on developing its pure-play condensate-rich Montney asset in the Pipestone area near Grande Prairie, Alberta. Pipestone Energy is committed to building long term value for our shareholders and values the partnerships that it is developing within its operating community. Pipestone Energy shares trade under the symbol PIPE on the TSX Venture Exchange. For more information, visit www.pipestonecorp.com.