Petrus Resources Announces Credit Facility And Operations Update
May 31 2019 - 4:59PM
Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ)
announces the completion of the 2019 annual review of its revolving
credit facility ("RCF"), and provides an operations update.
REVOLVING CREDIT FACILITY
The 2019 annual review of the RCF has been
completed. The RCF syndicate of lenders have reduced the
Company's borrowing base of $110 million to $100 million. The
revolving period has been extended to May 31, 2020 and the maturity
date for repayment of the RCF is May 31, 2020. Borrowings
under the RCF above $95 million are subject to an approved
development plan under the RCF and subsequent to August 31, 2019,
consent from each of the RCF syndicate of lenders is required for
borrowings under the RCF to exceed $95 million. At May 31,
2019, Petrus was drawn $95 million on the $100 million facility.
The terms of the RCF have also been amended to include enhanced
compliance and reporting features related to Alberta Energy
Regulator regulations regarding abandonment and reclamation
activities and certain restrictions on acquisitions and
dispositions to ensure compliance with liability management
ratings.
OPERATIONS UPDATE
The Cardium light oil wells drilled during the
first quarter of 2019 were brought on production in late
March. With the 1.6 net additional wells, the Company’s field
estimated average April production was 8,873 boe/d, compared to
8,505 boe/d in the first quarter of 2019. Light oil and
liquids production made up 85% of the increased volumes. To
maximize drilling cost efficiencies, and in part due to weather
conditions, Petrus has deferred additional drilling to the third
quarter of 2019. Capital spending for the second quarter of
2019 is expected to be spent on the completion of 0.3 net
previously drilled non-operated wells, as well to add an additional
condensate/light oil stabilizer to the Petrus operated Ferrier
processing facility. The additional stabilizer will help to
increase the efficiency of processing and treating condensate and
light oil volumes that are expected to be delivered as part of the
2019 capital plan. As a result of the lower capital spending
in the second quarter, Petrus expects that its quarterly debt
repayment will be $4 to $5 million which is in excess of the $1 to
$2 million previously forecasted.
ABOUT PETRUS
Petrus is a public Canadian oil and gas company
focused on property exploitation, strategic acquisitions and
risk-managed exploration in Alberta.
For further information, please
contact:Neil Korchinski, P.Eng.President and Chief
Executive OfficerT: 403-930-0889E:
nkorchinski@petrusresources.com
ADVISORIESForward-Looking
StatementsCertain information regarding Petrus set
forth in this press release contains forward-looking statements
within the meaning of applicable securities law, that involve
substantial known and unknown risks and uncertainties. The use of
any of the words “anticipate”, “continue”, “estimate”, “expect”,
“may”, “will”, “project”, “should”, “believe” and similar
expressions are intended to identify forward-looking statements.
In particular, forward-looking statements in this press
release include, but are not limited to, statements with respect to
the expected second quarter debt repayment and the borrowing base
under the RCF. Such statements represent Petrus’ internal
projections, estimates or beliefs concerning, among other things,
an outlook on the estimated amounts and timing of capital
investment, anticipated future debt, production, revenues or other
expectations, beliefs, plans, objectives, assumptions, intentions
or statements about future events or performance. These statements
are only predictions and actual events or results may differ
materially. Although Petrus believes that the expectations
reflected in the forward-looking statements are reasonable, it
cannot guarantee future results, levels of activity, performance or
achievement since such expectations are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause Petrus’
actual results to differ materially from those expressed or implied
in any forward-looking statements made by, or on behalf of,
Petrus.
These forward-looking statements are subject to
certain risks and uncertainties, some of which are beyond the
Company’s control, including the impact of general economic
conditions; volatility in market prices for crude oil, NGL and
natural gas; industry conditions; currency fluctuation; any future
asset dispositions; and other risks. With respect to
forward-looking statements contained in this press release, Petrus
has made certain assumptions, including in relation to future
borrowing base reviews and Petrus' acquisition and divestiture
program. Management has included the above summary of assumptions
and risks related to forward-looking information provided in this
press release in order to provide shareholders with a more complete
perspective on Petrus’ future operations and such information may
not be appropriate for other purposes. Petrus’ actual results,
performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that the Company will
derive therefrom. Readers are cautioned that the foregoing lists of
factors are not exhaustive.
These forward-looking statements are made as of the date of this
press release and the Company disclaims any intent or obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
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