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Bonterra Energy Corp. Announces Redetermination of Credit Facility
Bonterra Energy Corp. Announces Redetermination of Credit Facility Canada NewsWire...
About this update from Bonterra Energy Corp.
[{"type":"text","content":"\n\n\n\nBonterra Energy Corp. Announces Redetermination of Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, AB, July 14, 2020\n\n\n\nCALGARY, AB, July 14, 2020 /CNW/ - Bonterra Energy Corp. (www.bonterraenergy.com) (TSX: BNE) (\"Bonterra\" or the \"Company\") today provides a corporate update and confirms the Company has completed the extension and redetermination of its credit facility in partnership with its syndicate of lenders. Bonterra has continued to take meaningful steps in the first half of 2020 to weather a challenging operating environment while prioritizing protection of the balance sheet and the preservation of long-term shareholder value. Key initiatives undertaken to date in 2020 include: \nSuspension of the monthly dividend (effective April 1, 2020); Suspension of the capital program in March, 2020; Reduction of monthly operating costs by approximately $1.5 million and general and administrative costs by approximately $0.2 million (~40% per month); and The commencement of applications to Federal and Provincial economic stimulus programs from Export Development Canada (EDC), Business Development Bank of Canada (BDC), and the Government of Alberta's Site Rehabilitation program (SRP). Given the Company's low corporate decline rate of approximately 21 percent combined with management's proactive cost reduction initiatives undertaken to date, Bonterra intends to continue actively reducing net debt through the balance of 2020 assuming current forward commodity prices. The Company suspended its capital program in March in response to the dramatic decrease in global oil demand and prices associated with the COVID-19 pandemic and is currently evaluating the reactivation of a limited capital program in the third quarter of 2020. \nCredit Facility Redetermination \nBonterra's credit facility has been 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,...