CALGARY, AB, July 14, 2020 /CNW/ - Bonterra Energy Corp.
(www.bonterraenergy.com) (TSX: BNE) ("Bonterra" or the "Company")
today provides a corporate update and confirms the Company has
completed the extension and redetermination of its credit facility
in partnership with its syndicate of lenders. Bonterra has
continued to take meaningful steps in the first half of 2020 to
weather a challenging operating environment while prioritizing
protection of the balance sheet and the preservation of long-term
shareholder value. Key initiatives undertaken to date in 2020
include:
- Suspension of the monthly dividend (effective April 1, 2020);
- Suspension of the capital program in March, 2020;
- Reduction of monthly operating costs by approximately
$1.5 million and general and
administrative costs by approximately $0.2
million (~40% per month); and
- The commencement of applications to Federal and Provincial
economic stimulus programs from Export Development Canada (EDC),
Business Development Bank of Canada (BDC), and the Government of
Alberta's Site Rehabilitation
program (SRP).
Given the Company's low corporate decline rate of approximately
21 percent combined with management's proactive cost reduction
initiatives undertaken to date, Bonterra intends to continue
actively reducing net debt through the balance of 2020 assuming
current forward commodity prices. The Company suspended its capital
program in March in response to the dramatic decrease in global oil
demand and prices associated with the COVID-19 pandemic and is
currently evaluating the reactivation of a limited capital program
in the third quarter of 2020.
Credit Facility Redetermination
Bonterra's credit facility has been confirmed at $300 million, comprised of a $125 million revolving facility, a $25 million operating facility and a $150 million term loan facility with the
revolving period extended to August 31,
2020 and the credit facility maturing on April 28, 2021. The Company has established a
2020 maintenance capital budget of approximately $27 million, with the ability to expand this
budget with Board and unanimous approval from the lending
syndicate. Bonterra anticipates the credit facility will provide
sufficient liquidity to execute on its business plan through the
balance of 2020.
Bonterra Energy Corp. is a conventional oil and gas corporation
with operations in Alberta,
Saskatchewan and British Columbia, focused on its strategy of
long-term, sustainable growth and value creation for shareholders.
The Company's shares are listed on The Toronto Stock Exchange under
the symbol "BNE".
Forward Looking Information
Certain statements contained in this release include statements
which contain words such as "anticipate", "could", "should",
"expect", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions, relating to matters that are not historical
facts, and such statements of our beliefs, intentions and
expectations about development, results and events which will or
may occur in the future, constitute "forward-looking information"
within the meaning of applicable Canadian securities legislation
and are based on certain assumptions and analysis made by us
derived from our experience and perceptions. Forward-looking
information in this release includes, but is not limited to:
business strategy and outlook; expectations regarding the potential
impact of COVID-19; future capital expenditures, including the
amount and nature thereof; expectations regarding the potential
impact of government support programs, and other such matters.
All such forward-looking information is based on certain
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances. The risks, uncertainties, and
assumptions are difficult to predict and may affect operations, and
may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general
economic conditions; industry conditions; changes in applicable
environmental, taxation and other laws and regulations as well as
how such laws and regulations are interpreted and enforced; the
ability of oil and natural gas companies to raise capital; the
effect of weather conditions on operations and facilities; the
existence of operating risks; volatility of oil and natural gas
prices; oil and gas product supply and demand; risks inherent in
the ability to generate sufficient cash flow from operations to
meet current and future obligations; increased competition; stock
market volatility; opportunities available to or pursued by us; and
other factors, many of which are beyond our control.
Actual results, performance or achievements could differ
materially from those expressed in, or implied by, this
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do, what
benefits will be derived there from. Except as required by law,
Bonterra disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise.
The forward-looking information contained herein is expressly
qualified by this cautionary statement.
Numerical Amounts
The reporting and the functional currency of the Company is
the Canadian dollar.
The TSX does not accept responsibility for the
accuracy of this release.
SOURCE Bonterra Energy Corp.
