Business
Journey Energy Inc. Announces Termination of Proposed Countess Asset Sale
Journey Energy Inc. Announces Termination of Proposed Countess Asset Sale Canad...
About this update from Journey Energy, Inc.
[{"type":"text","content":"\n \n \n \n Journey Energy Inc. Announces Termination of Proposed Countess Asset Sale\n \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 \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n March 1, 2021\n \n /CNW/ - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (\"\n \n Journey\n \n \" or the \"\n \n Company\n \n \") reports that it has today formally terminated the purchase and sale agreement with the third-party purchaser for Journey's recently commissioned 4.2 megawatt power plant and the associated Countess natural gas assets (collectively the \"Countess Assets\").\n \n \n Journey has decided to terminate the agreement with the third party rather than provide a further extension to the closing date.  The disposition of the Countess Assets was originally announced on\n \n October 30\n \n , 2020.  Given the extended period of time Journey granted to the third party to consummate the purchase; coupled with the significant appreciation in forward pricing for both natural gas and power, Journey felt that the current consideration realized from the sale did not appropriately capture the potential value and the optionality the assets provide to the Company.  Journey management estimates that cash flow from the Countess Assets will be\n \n $1.5\n \n -2.0 million in the first quarter of 2021 alone.  In addition, the power facility was constructed in a manner that allows for expanded capacity, providing significant future optionality for the Company.  Because the third-party purchaser did not complete the transaction pursuant to the most recent extension granted to them, Journey has retained their\n \n $902 thousand\n \n deposit.\n \n \n In conjunction with this decision, Journey has also executed an amendment to its credit agreement with Alberta Investment Management Corporation (\"AIMCo\") to extend the maturity date of the\n \n $15 million\n \n tranche of term debt to\n \n June 30, 2021\n \n .  This extension will provide Journey with time to explore any and all opportunities with new parties, which may include: selling all or a p...