Painted Pony announces credit facility update

CALGARY, Alberta – Painted Pony Energy Ltd. (“Painted Pony” or the “Corporation“) (TSX: PONY) today confirms the execution of an agreement (the “Extension Agreement”) with the Corporation’s syndicate of lenders to extend Painted Pony’s annual borrowing base redetermination date from August 31, 2020 to the earlier of either October 31, 2020 or the date on which the arrangement between Painted Pony and Canadian Natural Resources Limited (“CNRL”), pursuant to which CNRL has agreed to acquire all of the issued and outstanding common shares of Painted Pony, as previously disclosed in Painted Pony’s press release dated August 10, 2020 (the “Transaction”) is unable to be completed.

The Extension Agreement immediately reduces the syndicated credit facilities available to Painted Pony to approximately $280 million with a further reduction to $275 million on September 24, 2020. Painted Pony was drawn approximately $165 million as at August 31, 2020.

Current outstanding letters of credit that reduce Painted Pony’s credit capacity total approximately $63 million. Painted Pony has additional letters of credit totaling $22 million which are backstopped by Export Development Canada.

Advisories & Contact

DEFINITIONS AND ADVISORIES

Currency: All amounts referred to in this press release are stated in Canadian dollars unless otherwise specified.

Forward-Looking Information: This press release contains certain forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation’s current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. Words such as “plan”, “expect”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words that indicate events or conditions may occur are intended to identify forward-looking information. In particular, this press release contains forward looking information relating to the Transaction and the redetermination of the Corporation’s annual borrowing base on October 31, 2020. Forward-looking information is based on certain expectations and assumptions including but not limited to the completion of the Transaction, which is subject to a number of conditions which are typical for transactions of this nature, the state of the economy and the exploration and production business; the economic and political environment in which the Corporation operates, the ability of oil and natural gas companies to raise capital; volatility of oil and natural gas prices; and oil and gas product supply and demand. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although the Corporation’s management believes that the expectations in the forward-looking statement is reasonable, there can be no assurance that such expectation will prove to be correct. As a consequence, actual results may differ materially from those anticipated. Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation’s plans or expectations, except as required by applicable securities laws.

ABOUT PAINTED PONY

Painted Pony is a publicly traded natural gas company based in Western Canada. The Corporation is primarily focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony’s common shares trade on the TSX under the symbol “PONY”.

Contact Information:
Patrick R. Ward
President and Chief Executive Officer

Stuart W. Jaggard
Chief Financial Officer

Jason W. Fleury
Director, Investor Relations
(403) 776-3261

(403) 475-0440
1-866-975-0440 toll free
ir@paintedpony.ca
www.paintedpony.ca