Business
Pine Cliff Energy Ltd. Announces Second Quarter 2020 Results and Insider Loan Facility
Calgary, Alberta--(Newsfile Corp. - August 5, 2020) - Pine Cliff Energy Ltd. ( TSX: PNE ) (" P...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces Second Quarter 2020 Results and Insider Loan FacilityCalgary, Alberta--(Newsfile Corp. - August 5, 2020) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its second quarter financial and operating results. Included in the filings were Pine Cliff's unaudited interim condensed consolidated financial statements and related management's discussion and analysis for the three and six months ended June 30, 2020 (the \"Q2-Report\"). Selected highlights are shown below and should be read in conjunction with the Q2-Report.Second Quarter 2020 HighlightsThe second quarter of 2020 was dominated by the collapse of crude oil and liquids prices due to global over-supply combined with demand destruction from the coronavirus (\"COVID-19\") pandemic. Despite 92% of Pine Cliff's Q2 production volume being natural gas, the price collapse had a material impact on its revenue and funds flow. While the negative impact of low crude oil and liquids prices was mitigated to some degree by stable natural gas prices, it was not enough to prevent Pine Cliff from generating negative adjusted funds flow. Highlights from Pine Cliff's second quarter ended June 30, 2020 include:realized $2.03 per Mcf natural gas price for the three months ended June 30, 2020, 3% higher than the AECO 5A benchmark of $1.98 per Mcf and 20% higher than the $1.69 per Mcf realized for the comparable quarter in 2019;produced an average of 18,968 Boe/d and 19,068 Boe/d in the three and six months ended June 30, 2020, a 1% decrease and 1% increase respectively compared to the same periods in 2019;tied-in production from 1 gross (0.08 net) Edson oil well drilled in the first quarter of 2020; and,accessed the Federal Government's Canada Emergency Wage Subsidy Program (\"CEWS\") during the quarter, reducing office and field payroll expenses in total by $561,000. Insider Loan FacilityWithout access to a bank credit facility, the crude oil price volatility resulting from COVID-19 put a strain on the Company's cash balance and working capital. To alleviate this short-term pressure on liquidity, Pine Cliff has entered into a Loan Facility (the \"Facility\") with an insider of the Company (the \"Lender\") whereby the Lender will provide up to $4.0 million of borrowings at an interest rate of 6.5% per annum...