Business
LGX Oil + Gas Inc. enters into $30 million bank facility, increases exit production and capital budget guidance, and spuds first horizontal well in 2014 Alberta Bakken development drilling program
CALGARY , Aug. 21, 2014 /CNW/ - LGX Oil + Gas Inc. ("LGX" or the "Company") (TSXV:OIL) is...
About this update from Permex Petroleum Corp.
[{"type":"text","content":"\n\nCALGARY, Aug. 21, 2014 /CNW/ - LGX Oil + Gas Inc. (\"LGX\" or the \"Company\") (TSXV:OIL) is pleased to announce that it has spud the first horizontal well in its 2014 Alberta Bakken development drilling program, revised its 2014 exit production guidance to 1,500 Boe per day from the previously announced exit production guidance of 1,400 Boe per day and replaced its previous banking facility with a new $30 million banking facility.\n\nLGX spud the first well (15-25-8-24W4) of a budgeted two well horizontal drilling program on August 13, 2014, targeting the Big Valley Formation with first production anticipated in the fourth quarter of 2014. This well offsets LGX's highly successful 14-2 well drilled late in 2013. LGX will now drill the 15-25 well at 100 percent working interest and expects to also drill the second well at 100 percent working interest. The Company now expects to spud the second well in mid-September immediately following rig release of the first well with first production anticipated late in the fourth quarter of 2014. These wells were delayed slightly from the original budget due to the late arrival of the drilling rig.\n\nAs a result of the above developments, the Company now expects average production of approximately 1,000 Boe per day for 2014 with exit production of 1,500 Boe per day (exit production is approximately 67 percent higher than 2013 exit production guidance). To account for the increase in working interest as well as additional scope in the completions of the wells, the Company now expects capital spending in 2014 to be approximately $18.5 million.\n\nTo fund this program, LGX has entered into a new banking facility with the Alberta Treasury Branch consisting of a $20 million revolving demand credit facility and a $10 million non-revolving term credit facility. The features of the term credit facility include a two year committed term (subject to extension upon mutual consent) available in two tranches with full payment of the principle on maturity. The term credit facility is subject to financial and reserve-based covenants. The new facility replaces the previous $25 million facility. The revolving portion of the new facility is a borrowing base facility subject to annual review by the lender, with the next review scheduled for no later than May 31, 2015. The new credit facility provides the...