CALGARY, March 4, 2020 /CNW/ - OBSIDIAN ENERGY LTD.
(TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces that, further to our press release on February 27, 2020, we have reached an agreement
with our syndicated credit facility lenders to extend the date by
which certain conditions are required to be met from March 4, 2020 to March 13,
2020. Those conditions include:
- the maturity dates of the Company's outstanding senior notes
due on March 16, 2020, May 29, 2020 and December
2, 2020, totaling US$27
million, have been extended to at least November 30, 2021;
- the net rent amount payable under the Company's office lease
will not exceed an aggregate amount of $10
million per annum for the years 2020 through 2024 and
$833,333 for the month of
January 2025, when the lease expires;
and
- the building landlord has agreed to indemnify the Company on
all existing subleases.
In the event the Company cannot reach agreement to meet the
above conditions with both the noteholders and the building
landlord by March 13, 2020, then our
$450 million syndicated credit
facility will cease to revolve with a term out final maturity date
of April 1, 2021. If the above
conditions are met on or before March 13,
2020, the $450 million
syndicated credit facility will have the following terms:
- revolving period under the agreement will end May 31, 2021 with the end date of the term period
being November 30, 2021;
- a revolving period reconfirmation date will occur on
June 22, 2020, whereby the lenders
may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term
period also concurrently accelerated to April 1, 2021; and
- the next scheduled borrowing base redetermination will occur on
November 30, 2020.
The Company continues to be in discussions with the noteholders
and building landlord on these outstanding items in order to
finalize the syndicated credit facility extension.
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 specific
terms which need to be amended in on order for the syndicated
credit facility extension to be finalized, including the extension
to the maturity dates on certain of the Company's outstanding
senior notes, the net rent payable under the office lease and an
indemnity of existing subleases; and expected impact to the credit
facility if those conditions are or are not met.
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; 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; other than noted herein,
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. 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.BC"). All figures are in Canadian dollars unless otherwise
stated.
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SOURCE Obsidian Energy Ltd.
