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.