CALGARY, AB, Oct. 29, 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
January 29, 2021. 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 January
29, 2021, 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 redetermination on January
29, 2021. Additionally, the lenders have elected to not proceed
with the borrowing base redeterminations on October 31, 2020 and on November 30, 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 January 29,
2021, subject to further extensions and option to complete a
borrowing base determination at that time, 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 impact of regional
and/or global health related events, including the ongoing COVID-19
pandemic, on energy demand and commodity prices; that the Company's
operations and production will not be disrupted by circumstances
attributable to the COVID-19 pandemic and the responses of
governments and the public to the pandemic; global energy policies
going forward, including the continued ability of members of OPEC,
Russia and other nations to agree
on and adhere to production quotas from time to time; 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;
future hedging activities; 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 (if necessary) to continue to extend the
revolving period and term out period of our credit facility, our
ability to maintain the existing borrowing base under our credit
facility, our ability to renew or replace our syndicated bank
facility and our ability to finance the repayment of our senior
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. 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 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 possibility
that the Company will not be able to continue to successfully
execute our business plans and strategies in part or in full, and
the possibility that some or all of the benefits that the Company
anticipates will accrue to our Company and our stakeholders as a
result of the successful execution of such plans and strategies do
not materialize; the possibility that the Company is unable to
complete one or more of the potential transactions being pursued
pursuant to our ongoing strategic alternatives review process
(including the proposed acquisition of Bonterra Energy Corp.), on
favorable terms or at all, or that the Company and its stakeholders
do not realize the anticipated benefits of any such transaction
that is completed (including the benefits of the proposed
acquisition of Bonterra Energy Corp.); the possibility that the
Company ceases to qualify for, or does not qualify for, one or more
existing or new government assistance programs implemented in
connection with the COVID-19 pandemic and other regional and/or
global health related events or otherwise, that the impact of such
programs falls below our expectations, that the benefits under one
or more of such programs is decreased, or that one or more of
such programs is discontinued; the impact on energy demand and
commodity prices of regional and/or global health related events,
including the ongoing COVID-19 pandemic, and the responses of
governments and the public to the pandemic, including the risk that
the amount of energy demand destruction and/or the length of the
decreased demand exceeds our expectations; the risk that the
significant decrease in the valuation of oil and natural gas
companies and their securities and the decrease in confidence in
the oil and natural gas industry generally that has been caused by
the COVID-19 pandemic persists or worsens; the risk that the
COVID-19 pandemic adversely affects the financial capacity of the
Company's contractual counterparties and potentially their ability
to perform their contractual obligations; the possibility that the
revolving period and/or term out period of our credit facility and
the maturity date of our senior notes is not further extended (if
necessary), that the borrowing base under our credit facility is
reduced, that the Company is unable to renew our credit facilities
on acceptable terms or at all and/or finance the repayment of our
senior notes when they mature on acceptable terms or at all and/or
obtain debt and/or equity financing to replace one or both of our
credit facilities and senior notes; the possibility that we breach
one or more of the financial covenants pursuant to our agreements
with our lenders and the holders of our senior notes; the
possibility that we are forced to shut-in additional production or
continue existing production shut-ins longer than anticipated,
whether due to commodity prices failing to rise or decreasing
further or changes to existing government curtailment programs or
the imposition of new programs; the risk that OPEC, Russia and other nations fail to agree on
and/or adhere to production quotas from time to time that are
sufficient to balance supply and demand fundamentals for crude oil;
general economic and political conditions in Canada, the U.S. and globally, and in
particular, the effect that those conditions have on commodity
prices and our access to capital; industry conditions, including
fluctuations in the price of crude oil, natural gas liquids and
natural gas, price differentials for crude oil and natural gas
produced in Canada as compared to
other markets, and transportation restrictions, including pipeline
and railway capacity constraints; fluctuations in foreign exchange
or interest rates; unanticipated operating events or environmental
events that can reduce production or cause production to be shut-in
or delayed (including extreme cold during winter months, wild fires
and flooding); the possibility that fuel conservation measures,
alternative fuel requirements, increasing consumer demand for
alternatives to hydrocarbons and technological advances in fuel
economy and renewable energy generation systems could permanently
reduce the demand for oil and natural gas and/or permanently impair
the Company's ability to obtain financing on acceptable terms or at
all, and the possibility that some or all of these risks are
heightened as a result of the response of governments and consumers
to the ongoing COVID-19 pandemic; and the other 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.
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.