CALGARY, Nov. 12, 2015 /CNW/ - Ikkuma Resources
Corp. ("Ikkuma" or the "Corporation") (TSXV: IKM) has renewed
its syndicated credit facilities ("Facilities") and the lenders
thereunder have confirmed a borrowing base of $65 million, down from $75
million, with no other material changes to the existing
terms and conditions thereof. Ikkuma's outstanding bank debt
at October 31, 2015 was $28.8 million. The reduction in the borrowing
base is due to insufficient production history on Ikkuma's recently
tied-in recompletions. These wells were tied-in on schedule and
initial flow rates have met or exceeded expectations; however,
production from these wells has been intermittent due to
third-party pipeline restrictions. The lenders offered to maintain
the Facilities at $75 million with
certain restrictions on access to the additional $10 million. Ikkuma chose to renew the
Facilities at $65 million under
existing terms and conditions thereby lowering the Corporation's
standby fees. The Corporation is committed to maintaining and,
potentially growing, production within cash flow in 2016. Ikkuma
has a robust hedging program, with 30.6 mmcf/d (5,100 BOE/d) hedged
through 2016 at $3.06/mcf. The
next scheduled borrowing base review will be on or before
May 31, 2016.
About Ikkuma
Ikkuma Resources Corp. is a diversified
junior public oil and gas company listed on the TSXV under the
symbol "IKM", with holdings in both conventional and unconventional
projects in Western Canada. The technical team has worked
together for over a decade in the Foothills Region of Western Canada, through two successful,
publicly traded companies. These unique skills and repeat
success at exploiting a complex, potentially prolific play type,
are fundamental ingredients for a successful growth-oriented
company in Western Canada. Corporate information can be found
at: www.ikkumarescorp.com.
Oil and Gas Advisory
In this press release, the abbreviation BOE means a barrel of
oil equivalent derived by converting gas to oil in the ratio of 6
Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOEs may be
misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that
the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy
equivalency of 6 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf
of gas to 1 bbl of oil basis may be misleading as an indication of
value.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Ikkuma Resources Corp.