CALGARY, AB – Clearview Resources Ltd. (“Clearview” or the “Company”) is pleased to provide the following corporate update to its shareholders.
CREDIT FACILITY REVIEW
The Company’s credit facility was set for its normal course review to be completed by June 30, 2020. The Company’s lender, ATB Financial (“ATB”), informed Clearview that the completion of the review will be extended to a later time period as lenders to the oil and gas industry deal with the impact of COVID-19 and the significant drop in oil and natural gas liquids prices to industry credit facilities. Since mid- September, the Company has been in discussions with ATB towards completion of its credit facility review. In the meantime, the Company remains in compliance in all aspects of the current credit facility and continues to focus on reducing its net debt. Despite the very challenging commodity price market for its production and periods of shut-in production, the Company has been able to reduce its net debt from $15.4 million at the end of December 31, 2019 to $14.5 million as of August 31, 2020
FEDERAL AND PROVINCIAL PROGRAMS
The Company continues to assess the impact of the current market dynamics and investigate any programs initiated by the federal government through Export Development Canada (“EDC”), Business Development Bank of Canada and the Canada Emergency Wage Subsidy (“CEWS”). Clearview has received confirmation of its eligibility for the guarantee program from the EDC and continues to work with its Lender on its applicability to obtain added support for its credit facility. The Company also meets the requirements of the CEWS program and has been receiving its eligible subsidy under this program. Clearview has also filed numerous applications for wellsite rehabilitation under the Government of Alberta’s Site Rehabilitation Program (“SRP”). The Company has received approval on $150 thousand through the SRP program.
With minimal capital spending, the Company has been able to direct the majority of its adjusted funds flow towards bank debt reduction while still maintaining production at approximately 2,025 boe/d for the third quarter of 2020.
On September 3, 2020, the Company closed the disposition of its working interest in the Crossfield Turner Valley Unit for nominal proceeds. The disposition results in the reduction of approximately $87,000 of decommissioning obligations. Management continues to actively pursue the disposition of additional non-core assets to reduce administration costs and dispose of assets generating negative cash netbacks.
In addition to non-core property dispositions, the Company continues to direct efforts toward strategic acquisitions and potential mergers/business combinations to significantly increase the size of the Company for greater efficiencies and cash generating capabilities.