CALGARY, AB, Aug. 31, 2020 /CNW/ - Bonterra Energy Corp.
(www.bonterraenergy.com) (TSX: BNE) ("Bonterra" or the "Company")
announces it has received approval from its syndicate of lenders to
extend the revolving period applicable to the Company's existing
credit facility to September 30, 2020
from August 31, 2020. The credit
facility will continue to be available on a revolving basis until
that date.
The extension affords Bonterra and its syndicate of lenders
additional time to finalize definitive agreements related to the
Business Development Bank of Canada ("BDC") non-binding Term Sheet under
their Business Credit Availability Program ("BCAP"), which would
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 offers Bonterra 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.
Press Release by Obsidian on August
31, 2020
Bonterra also acknowledges the press release issued earlier this
morning on August 31, 2020 by
Obsidian Energy Ltd. (the "Obsidian Press Release"), whereby
Obsidian expressed their interest in a potential transaction with
Bonterra. At all times, Bonterra takes into consideration
potential alternatives that could be of value and benefit to its
stakeholders. Any unsolicited third-party expression of
interest in a potential transaction is reviewed by Bonterra and its
Board of Directors (and also, as appropriate, with its legal and
financial advisors). With respect to the Obsidian Press
Release, Bonterra confirms that the Company remains aware of
Obsidian's interest in a potential transaction. Bonterra does
not intend to provide any further public announcements regarding
the Obsidian Press Release and any matters referred to therein
unless (i) future discussions with Obsidian, if any, result in a
transaction, or (ii) the Company determines that disclosure is
warranted and in accordance with the requirements of applicable
securities law.
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. 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; 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.
