/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH
U.S. NEWSWIRES./
CALGARY, AB, July 27, 2020 /CNW/ - Highwood Oil Company Ltd.
(TSXV: HOCL) ("Highwood" or the "Company") announces
revisions to the Company's reserve-based credit facility (the
"Credit Facility").
Credit Facility Redetermination
The Company, together with its sole lender, has completed the
redetermination of its Credit Facility. The Company's Credit
Facility has been confirmed at $38
million, with the earliest revolving period extended to
September 30, 2020 and the term
period amended to May 30, 2021.
Should oil pricing improve the Company would aim to extend the
revolving periods prior to the next renewal date.
Highwood anticipates the Credit Facility will provide sufficient
liquidity to execute on its second half 2020 business plan having
spent $4.2 million in capital through
March 31, 2020.
The Company has agreed to a hedging program locking-in forward
pricing on 800 bbls/d for a period of one year within sixty days of
entering the Credit Facility. The next renewal is set for on
or before November 30,
2020.
Highwood has begun the application process to access some of the
available credit guarantee programs provided by the Export
Development Bank of Canada ("EDC")
specific to the oil and gas industry.
Operational Update
Amidst the reality of the current oil price environment, the
Company has continued to try and reduce corporate overhead and
field expenses. Corporate overhead improvements have been
realized through the reduction of full-time staff, application of
government grants including the Canada Emergency Wage Subsidy ("CEWS") and
reduction of salaries. The Company has provided a re-organization
of field personnel and contractors amongst other operating expense
initiatives in order to lower field level costs.
The Company continues to bring on production previously shut-in
as a result of the global oil price collapse. Total net Company
production today is 1,400 bbl/d of oil.
Warnings
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this press
release.
This news release contains forward-looking statements
relating to the future operations of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations
include risks detailed from time to time in the filings made by the
Company with securities regulations.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements as
expressly required by Canadian securities law.
SOURCE Highwood Oil Company Ltd.