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Source Energy Services Announces Supply Agreement with Seven Generations Energy, Banking Amendment, Capital Budget for 2020 and Insurance Update
(via TheNewswire) Calgary, Alberta - TheNewswire - January 13, 2020...
About this update from Source Energy Services Ltd.
[{"type":"text","content":"Source Energy Services Announces Supply Agreement with Seven Generations Energy, Banking Amendment, Capital Budget for 2020 and Insurance Update(via TheNewswire)\n \n \nCalgary, Alberta - TheNewswire - January 13, 2020 - (TSX:SHLE) (OTC:SCEYF) Source Energy Services Ltd. (\"Source\") is pleased to provide the following updates:\n\n\n \nNEW 3-YEAR CONTRACT\n\n\n \nSource is pleased to announce that it has renewed its relationship with Seven Generations Energy (\"Seven Generations\") by entering into a new three-year agreement to provide Seven Generations with proppant and related logistics services for their Kakwa River Project. This agreement supports Seven Generations' development of this large-scale, liquids rich Montney natural gas property, with an efficient and reliable supply of proppant that will be supplied from Source's Wembley, Alberta terminal.\n\n\n \nSource's Wembley terminal is a double unit train capable facility located in the heart of the Montney play. The terminal can transload over 200,000 metric tonnes of proppant per month, making it Canada's highest capacity frac sand terminal.\n\n\n \n\"Source is pleased to enter into this agreement with Seven Generations Energy to support its Montney activity,\" said Brad Thomson, Chief Executive Officer of Source, \"By continuing to work together, our companies will be able to ensure the most efficient delivery of proppant to the wellsite.\"\n\n\n \nMarty Proctor, President & CEO of Seven Generations said, \"Reliable and timely deliveries of high-quality proppant at fair prices has been essential to 7G's ability to construct some of the most economic liquids-rich natural gas wells in Canada. Source has done an excellent job of meeting our proppant needs for the past three years and we're pleased to extend this mutually beneficial relationship for another three years.\"\n\n\n \nBANKING AMENDMENT\n\n\n \nSource confirms that it has reached an agreement with its banking syndicate to make certain amendments to its asset backed credit facility (\"ABL\"). Under the amendments, Source's Fixed Charge Coverage Ratio will be calculated monthly and will be lowered from a minimum of 1.25:1 to a minimum of 1.10:1.00 for all periods ending on or before December 31, 2020, as well as some other minor adjustments to make the amended arrangement conform with standard ABL facilities.\n...