CALGARY, AB, Aug. 20, 2020 /CNW/ - Bonterra Energy Corp.
(www.bonterraenergy.com) (TSX: BNE) ("Bonterra" or the "Company")
is pleased to announce that it has entered into a non-binding term
sheet (the "BDC Term Sheet") with the Business Development Bank of
Canada ("BDC"), in partnership
with its syndicate of lenders, for a non-revolving four year term
facility of potentially up to $45
million and subject to formal credit approval from BDC and
the syndicate.
Subsequent to the end of the second quarter, on July 14, 2020, Bonterra's credit facility was
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. On August
19, 2020 the Company entered into the BDC Term Sheet with
the BDC under their Business Credit Availability Program ("BCAP")
which, subject to the entering into of definitive agreements, will
potentially provide the Company with an up to $45 million non-revolving, second lien, four year
term facility (the "BDC Term Facility"). The BDC Term
Facility will provide Bonterra with significant additional
long-term liquidity at reasonable interest rates to withstand the
impacts of the COVID-19 pandemic and allow the Company to continue
pursuing development of its high-quality, Cardium light oil asset
base in order to generate long-term, sustainable net asset value
per share growth as the economy recovers. Based on a
successful outcome from the BDC program, Bonterra would deploy
proceeds to re-initiate its capital program in late Q3 and early Q4
2020 and target production levels consistent with those realized in
2019, leading to enhanced liquidity and improved financial
flexibility.
To further advance its abandonment program, Bonterra has
submitted applications under Alberta's Site Rehabilitation Program ("SRP")
to abandon over 600 well bores, pipelines and well sites and has
applied to similar programs in Saskatchewan and British Columbia, building on the successful
abandonment of 45 inactive well bores and associated pipelines
during the first quarter. The Government of Alberta will administer the SRP in various
phases to provide grant funding through service providers for the
abandonment or remediation of oil and gas sites. As a result
of these programs, the Company has been approved for funding of
approximately $6.6 million of
abandonment costs in total and will continue its efforts to apply
for further funding to leverage these programs for ongoing asset
retirement obligations as further information is
provided.
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.
