CALGARY, AB, Oct. 22, 2021 /CNW/ - Stampede Drilling Inc.
("Stampede" or the "Company") (TSXV: SDI) is pleased to announce it
has entered into an amending agreement (the "Second Amending
Letter") to its December 20, 2018,
credit facility agreement (the "Credit Facility Agreement") with
HSBC Bank Canada ("HSBC") in response to Stampede's 2021 strong
financial results and positive 2022 forecast.
The primary benefit of the Second Amending Letter is the early
termination of restrictions on the Company's capital expenditures.
Stampede believes that the Second Amending Letter is a positive
reflection of the Company's current financial position given that
covenant relief was no longer required, and HSBC agreed to its
early termination with all covenants reverting to the original
Credit Facility Agreement, other than the replacement of the
Interest Coverage Ratio (as defined in the Credit Facility
Agreement) with a Fixed Charge Coverage Ratio (as defined in the
Second Amending Letter). The Company expects that the Second
Amending Letter could result in additional capital spending in the
balance of 2021 and the first quarter of 2022, as a result of
Stampede's positive utilization and financial outlook.
FORWARD-LOOKING INFORMATION
Certain statements contained in this News Release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking information"). Forward-looking
information relates to future events or the Company's future
performance. All information other than statements of historical
fact is forward-looking information. The use of any of the words
"believe", "expect", "could" and similar expressions are intended
to identify forward-looking information. This News Release contains
forward-looking information pertaining to, among other things: the
impacts of the Second Amending Letter; and expectations regarding
capital expenditures.
Forward-looking information is presented in this News Release
for the purpose of assisting investors and others in understanding
certain key elements of the Company's financial results and
business plan, as well as the objectives, strategic priorities and
business outlook of the Company, and in obtaining a better
understanding of the Company's anticipated operating environment.
Readers are cautioned that such forward-looking information may not
be appropriate for other purposes.
Forward-looking information, by its very nature, is subject to
inherent risks and uncertainties and is based on many assumptions,
both general and specific, which give rise to the possibility that
actual results or events could differ materially from the
expectations of the Company expressed in or implied by such
forward-looking information and that the Company's business
outlook, objectives, plans and strategic priorities may not be
achieved. Macro-economic conditions, including public health
concerns (including the impact of the COVID-19 pandemic) and other
geopolitical risks, the condition of the global economy and,
specifically, the condition of the crude oil and natural gas
industry, and the ongoing significant volatility in world markets
may adversely impact drilling and completions programs, which could
materially adversely impact the Company. In addition to other
factors and assumptions which may be identified in this News
Release, assumptions have been made regarding, among other things:
the condition of the global economy, including trade, public health
(including the impact of the COVID-19 pandemic) and other
geopolitical risks; the stability of the economic and political
environment in which the Company operates; the effect that
commodity prices will have on the industry in which the Company
operates and the Company; the success of the measures implemented
by the Company to ensure the safety of its field and office
employees and safe, efficient and reliable operations at each of
its drilling sites; the creditworthiness of the Company's
customers; the effectiveness of the Company's financial risk
management policies at ensuring all payables are paid within the
pre-agreed credit terms; the ability of the Company to retain
qualified staff; the ability of the Company to obtain financing on
acceptable terms; the impact of increasing competition; the ability
to protect and maintain the Company's intellectual property;
currency, exchange and interest rates; the regulatory framework
regarding taxes and environmental matters in the jurisdictions in
which the Company operates; and the ability of the Company to
successfully implement key cost and discretionary spending plan
adjustments. Actual results and future events could differ
materially from those expected or estimated in such forward-looking
information. As a result, the Company cannot guarantee that any
forward-looking information will materialize and we caution you
against relying on any of this forward-looking information.
Accordingly, readers should not place undue reliance on
forward-looking information.
Additional information on these and other factors are disclosed
in the Company's management's discussion and analysis and annual
information form each dated March 24,
2021, the Company's management's discussion and analysis
dated July 28, 2021, and in other
reports filed with the securities regulatory authorities in
Canada from time to time and
available on SEDAR (sedar.com).
Statements, including forward-looking information, are made as
of the date of this News Release and the Company does not undertake
any obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws. The
forward-looking information contained in this News Release is
expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Stampede Drilling Inc.