CALGARY, Aug. 13, 2019 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX – OBE, NYSE – OBE) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces the extension of the Company's syndicated credit facility
with the underlying borrowing base and amount available under the
syndicated credit facility remaining at $550
million and $460 million,
respectively. The revolving period ends on February 28, 2020 with revolving period
reconfirmation dates on November 19,
2019 and January 20, 2020.
Under the agreement, the term-out period is extended to
November 30, 2020.
As part of the Peace River Oil Partnership disposition, our
partner has waived its right to exercise both the right of first
refusal and the tag along provisions. Furthermore, the transaction
has received the advanced ruling certificate from the Competition
Bureau of Canada. The disposition
continues to proceed through the usual steps, including terms of
the agreement and customary closing conditions. Obsidian Energy
expects to close the transaction by the end of August and will
provide updates as they arise. Upon the close of the transaction,
the amount available under the syndicated credit facility will be
reduced to $420 million.
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 document contains forward-looking statements
pertaining to, without limitation, the following: the expected
amount available under the syndicated credit facility, the
revolving reconfirmation dates and term-out period; the
anticipating closing date for the PROP disposition; and the
expected borrowing base and capacity after the PROP disposition.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things
that we do not dispose of any material producing properties other
than noted herein; that the current commodity price and foreign
exchange environment will continue or improve; future capital
expenditure levels; 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 crude oil, natural gas liquids and natural gas
production levels; future exchange rates and interest rates; future
debt levels; 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 to current and new customers;
our ability to obtain financing on acceptable terms, including our
ability to renew or replace our syndicated bank facility and our
ability to finance the repayment of our senior notes on maturity;
our partners ability to progress through their right of first
refusal and tag-along provisions in connection with the Peace River
Oil Partnership disposition; and our ability to add production and
reserves through our development and exploitation activities.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations 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 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.
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 any forward-looking statements. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
Obsidian Energy shares are listed on both the Toronto Stock
Exchange (symbol "OBE") and New York Stock Exchange (symbol "OBE").
All figures are in Canadian dollars unless otherwise stated.
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SOURCE Obsidian Energy Ltd.
