CALGARY, AB, Sept. 3, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD.
(TSX: OBE) (OTCQX: OBELF) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces the extension of our syndicated credit facility to
October 31, 2020. The syndicated
credit facility has an underlying borrowing base of $550 million and amount available to be drawn of
$450 million which remains unchanged.
Under the agreement, the syndicated credit facility continues to be
available on a revolving basis until October
31, 2020, subject to further extensions, with the end date
of the term period set at November 30,
2021. In connection with the extension, the lenders have the
option to complete a borrowing base determination on October 31, 2020.
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 presentation contains, without limitation,
forward-looking statements pertaining to the extension of our
syndicated credit facility to October 31,
2020, subject to further extensions and option to complete a
borrowing base determination, with end date of the term period set
at November 30, 2021.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things:
we will have the ability to continue as a going concern going
forward and realize our assets and discharge our liabilities in the
normal course of business; our ability to complete asset sales and
the terms and timing of any such sales; the Alberta government mandated production
curtailment; the impact of regional and/or global health related
events on energy demand; global energy policies going forward; the
economic returns that we anticipate realizing from expenditures
made on our assets; 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 capital expenditure levels; future crude oil,
natural gas liquids and natural gas production levels; drilling
results; future exchange rates and interest rates; future taxes and
royalties; the continued suspension of our dividend; 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; our ability to obtain financing on acceptable terms,
including our ability to renew or replace our reserve based loan;
that we are able to move forward through the various
reconfirmation, redetermination dates with the credit facility and
our ability to finance the repayment of our senior secured notes on
maturity; and our ability to add production and reserves through
our development and exploitation activities.
Although Obsidian Energy believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Obsidian Energy can give no
assurances that they will prove to be correct. Since
forward-looking information addresses future events and conditions,
by its very nature it involves inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include,
but are not limited to: the risks associated with the oil and gas
industry in general such as operational risks in development,
exploration and production; the possibility that the semi-annual
borrowing base re-determination under our reserve-based loan is not
acceptable to the Company or that we breach one or more of the
financial covenants pursuant to our amending agreements with
holders of our senior secured notes; the impact that any government
assistance programs could have on the Company in connection with,
among other things, the COVID-19 pandemic and other regional and/or
global health related events; the possibility that we are not able
to continue as a going concern and realize our assets and discharge
our liabilities in the normal course of business; the impact on
energy demands due to regional and/or global health related events;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
estimates and projections relating to reserves, production, costs
and expenses; health, safety and environmental risks; commodity
price and exchange rate fluctuations; interest rate fluctuations;
marketing and transportation; loss of markets; environmental risks;
competition; incorrect assessment of the value of acquisitions;
failure to complete or realize the anticipated benefits of
acquisitions or dispositions; ability to access sufficient capital
from internal and external sources; failure to obtain required
regulatory and other approvals; reliance on third parties; and
changes in legislation, including but not limited to tax laws,
royalties and environmental regulations. Readers are cautioned that
the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect Obsidian
Energy, or its operations or financial results, are included in the
Company's Annual Information Form (See "Risk Factors" and
"Forward-Looking Statements" therein) which may be accessed through
the SEDAR website (www.sedar.com), EDGAR website (www.sec.gov) or
Obsidian Energy's website.
Unless otherwise specified, 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 or
revise any forward.
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SOURCE Obsidian Energy Ltd.
