CALGARY, Feb. 27, 2020 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces the extension of the Company's syndicated credit facility
with the underlying borrowing base and amount available under the
syndicated credit facility set at $550
million and $450 million,
respectively, subject to specific items being amended as discussed
below. The amount available under the syndicated credit facility
has been reduced by $10 million to
the aforementioned $450 million
level. Additional terms in the amending agreement are as
follows:
- the revolving period under the agreement has been extended to
May 31, 2021 with the end date of the
term period extended to November 31,
2021;
- a revolving period reconfirmation date will occur on
June 22, 2020, whereby the lenders
may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term
period also concurrently accelerated to April 1, 2021; and
- the next scheduled borrowing base redetermination will occur on
November 30, 2020.
The May 31, 2021 revolving period
and corresponding November 30, 2021
term periods described above may be accelerated if by March 4, 2020, the following terms are not
met:
- the maturity dates of the Company's outstanding senior notes
due on March 16, 2020, May 29, 2020 and December
2, 2020, totaling US$27
million, have been extended to at least November 30, 2021;
- the net rent amount payable under the Company's office lease
will not exceed an aggregate amount of $10
million per annum for the years 2020 through 2024 and
$833,333 for the month of
January 2025, when the lease expires;
and
- the building landlord has agreed to indemnify the Company on
all existing subleases.
Failure to satisfy the above terms on or before March 4, 2020 will result in an acceleration of
the end date of the revolving period to March 4, 2020 and the end date of the term period
to April 1, 2021.
The Company is in active negotiations with our noteholders and
building landlord on these outstanding items in order to finalize
the extension.
Forward-Looking Statements
Certain statements contained in this document constitute
forward-looking statements or information (collectively
"forward-looking statements"). Forward-looking statements are
typically identified by words such as "anticipate", "continue",
"estimate", "expect", "forecast", "budget", "may", "will",
"project", "could", "plan", "intend", "should", "believe",
"outlook", "objective", "aim", "potential", "target" and similar
words suggesting future events or future performance. In
particular, this document contains forward-looking statements
pertaining to, without limitation, the following: the expected
amount available under the syndicated credit facility, the
revolving reconfirmation dates and term period; the specific terms
which need to be amended including the senior notes and rent
payable under the office lease; and expected impact to the credit
facility if those terms are not obtained.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things
that we do not dispose of any material producing properties; that
the current commodity price and foreign exchange environment will
continue or improve; future capital expenditure levels; future
crude oil, natural gas liquids and natural gas prices and
differentials between light, medium and heavy oil prices and
Canadian, WTI and world oil and natural gas prices; future crude
oil, natural gas liquids and natural gas production levels; future
exchange rates and interest rates; future debt levels; our ability
to execute our capital programs as planned without significant
adverse impacts from various factors beyond our control, including
weather, infrastructure access and delays in obtaining regulatory
approvals and third party consents; our ability to obtain equipment
in a timely manner to carry out development activities and the
costs thereof; our ability to market our oil and natural gas
successfully to current and new customers; other than noted herein,
our ability to obtain financing on acceptable terms, including our
ability to renew or replace our syndicated bank facility and our
ability to finance the repayment of our senior notes on
maturity.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking statements included in this document,
as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties
that contribute to the possibility that the forward-looking
statements contained herein will not be correct, which may cause
our actual performance and financial results in future periods to
differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other
things, the factors described under "Risk Factors" in our Annual
Information Form and described in our public filings, available in
Canada at www.sedar.com and
in the United States at
www.sec.gov. Readers are cautioned that this list of risk factors
should not be construed as exhaustive.
The forward-looking statements contained in this document speak
only as of the date of this document. Except as expressly required
by applicable securities laws, we do not undertake any obligation
to publicly update any forward-looking statements. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
Obsidian Energy shares are listed on both the Toronto Stock
Exchange (symbol "OBE") and New York Stock Exchange (symbol
"OBE.BC"). All figures are in Canadian dollars unless otherwise
stated.
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SOURCE Obsidian Energy Ltd.
